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Old 12-09-2015 | 11:57 AM
  #1629  
Hugedouche
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Joined: Dec 2014
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Originally Posted by flyingpuma1
As someone who has unfortunately been on ltd at this company, you have to pay taxes on it and for the first 3? Months they take the taxes out automatically.
Yeah that mostly likely true, but that might only be on the part that the company pays for... Sorry to hear you out I wish you well and the return back to the cockpit soon!

Found this for you:

How to Avoid Taxes on Life and Disability Insurance - MarketWatch

Now for the good news: LTD benefits are generally income-tax-free when you, rather than your employer, pay the premiums. On the other hand, if your employer pays the premiums as a tax-free fringe, any LTD benefits will be fully taxable to you. The same is true if you set aside part of your salary to pay the premiums with before-tax dollars under your employer's cafeteria benefit plan. Here are two strategies to deal with this tax dilemma.

* If LTD benefits would be taxable because your employer is paying the premiums, the preferred solution is to arrange for the premiums to be paid with after-tax dollars by withholding from your salary checks. That way, the premiums are treated as part of your taxable salary, which will cause a slight increase in your income tax bill. However any LTD benefits will be tax-free, which is the bigger consideration here.