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Old 04-08-2018, 09:18 PM
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Join Date: Apr 2018
Posts: 3
Getting a W2 for my LTD income

I received Long Term Disability (LTD) and no taxes are withheld.
Every year I get a W-2
The premium for the LTD was not pre-taxed, it was deducted once a month from my paycheck after taxes were withheld.
The disability plan is self administered by the same company I used to work for.
I have done some research and I feel that they are wrong for sending me a W-2 each year.
In the past I have filed without reporting the income and the IRS has contacted me stating that I owe the taxes for those years.
How can I dispute this and prove to the IRS that I shouldn't be taxed.
Or do I have to convince the LTD company to quit sending me W-2's and to quit reporting this income.
Thanks for your time



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Old 04-08-2018, 10:42 PM
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Join Date: Oct 2010
Posts: 5,083
I received Long Term Disability (LTD) and no taxes are withheld.
Every year I get a W-2
The premium for the LTD was not pre-taxed, it was deducted once a month from my paycheck after taxes were withheld.
The disability plan is self administered by the same company I used to work for.
I have done some research and I feel that they are wrong for sending me a W-2 each year.
In the past I have filed without reporting the income and the IRS has contacted me stating that I owe the taxes for those years.=====> The taxability of LTD income is a complex question because it depends upon the sources of the income, which can include government programs, employer plans and private insurance policies; in general, you must pay taxes on LTD payments from an employer-paid accident or health insurance plan. If both you and your employer paid premiums, only the payments arising from your employer's premiums are taxable. However aslongas you paid all the premiums,then you may exclude the LTD payments from your taxable income. Also, when you paid the premiums to an employer's cafeteria plan , I mean, a plan where you choose the benefits , and didn't pay taxes on those premiums, then, the LTD payments are taxable.


How can I dispute this and prove to the IRS that I shouldn't be taxed.===========>>as said, Unless the LTD pmts were taxable income to you, then no W-2 form should have ever been issued; I guess you need to have your financial person recheck the information you were given. And also ask them to explain to you why a W-2 was issued if the LTD pmts is not taxable income, because a W-2 should never be issued unless the income is taxable.


Or do I have to convince the LTD company to quit sending me W-2's and to quit reporting this income======>>yes you may do that; inthis situation the IRS can not help you at all I believe so.



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