//
Ontario Personal Injury Lawyers
Call 1-888-404-5167
Preszler Injury Lawyers

Do I Have to Report Long-Term Disability on My Taxes?


When serious illnesses, physical injuries, or mental conditions prevent an employee from performing the duties of their job for a lengthy period of time, long-term disability benefits may provide them with much-needed financial assistance while they’re unable to work.

Long-term disability benefits may be taxable. If your employer pays even a portion of the premiums for your group insurance plan, and a medical condition requires you to collect long-term disability benefits, you may be required to report these benefits as income on your taxes.

Taxation of Long-Term Disability Benefits Depends on Who Pays the Premiums

Whether or not you are required to pay taxes on the long-term disability benefits you receive depends on who has been paying the premiums for your insurance policy.

Your insurance policy may be part of a group plan for which your employer pays 100% of the premiums. In this case, you will not pay taxes on the costs of those premiums. However, if a serious medical condition prohibits you from working and you are required to claim long-term disability benefits from your insurance provider, you will then be required to pay taxes on the money you receive, and report it in your tax return.

Talk With Our Legal Team



If you have any questions and would like to schedule a call with our legal team for a FREE no-obligation consultation, contact us now. During this call you can ask any questions as it relates to your accident and/or claim and we'll discuss your options and possible outcomes.

Regardless of where you're located in Ontario – we may be able to help you. Don't delay - call us. Our lines are open 24/7.

If you pay into an individual policy, or you pay 100% of the premiums in your group insurance plan, you will be required to pay tax on your monthly premium payments. In these cases, should the day come when you need to claim those benefits, the compensation you receive will not be taxable, and you will not have to report it.

If you and your employer each pay a portion of your long-term disability premiums, you may be required to pay taxes on the portion of benefits for which your employer paid premiums.

Typically, your insurance company will inform you of who paid the premiums for your policy. If you owe any taxes on the benefits you receive, the insurer will usually deduct them from your monthly payments.

Reporting Canada Pension Plan Disability Benefits

If you are under the age of 65 and have sustained a severe, prolonged disability preventing you from returning to work, you may be eligible for Canada Pension Plan (CPP) Disability Benefits, provided you have been paying for this type of coverage. These payments must be reported on your taxes, as well.

Typically, the CPP deducts any taxes you might owe before issuing long-term disability benefits payments. CPP may also send you a detailed annual breakdown of the benefits you received and the taxes you’ve already paid on them in the form of a T4A(P) statement. Information outlined in this statement can be referenced when filing your annual tax return.

Contact Preszler Injury Lawyers Today

If you have any questions about your long-term disability benefits claim, Preszler Injury Lawyers may be able to provide you with useful assistance or advice. To discuss the details of your claim, call Preszler Injury Lawyers today at 1-800-JUSTICE for a free, initial case review.

 
TELL US ABOUT YOUR ACCIDENT

We are here 24/7 to address your injury case. You can speak with a lawyer to request a consultation.


or if you prefer fill out online form and we will repond within 24 hours.



Practice Areas

Call us now at
1-800-JUSTICE
®

151 Eglinton Ave W,
Toronto, ON
M4R 1A6
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
4145 N Service Rd
Burlington, ON
L7L 4X6
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
2 County Ct Blvd #400,
Brampton, ON
L6W 3W8
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
105 Consumers Drive
Whitby, ON
L1N 1C4
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
92 Caplan Ave #121,
Barrie, ON
L4N 0Z7
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
380 Wellington St Tower B, 6th Floor,
London, ON
N6A 5B5
Toll Free: 1-888-608-2111
2233 Argentia Rd Suite 302,
East Tower Mississauga, ON
L5N 6A6
Toll Free: 1-888-608-2111
1 Hunter St E,
Hamilton, ON
L8N 3W1
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
459 George St N,
Peterborough, ON
K9H 3R9
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
22 Frederick Street,
Suite 700
Kitchener, ON N2H 6M6
Fax: 1-855-364-7027
Toll Free: 1-888-608-2111
352 Elgin Street,
Ottawa ON
K2P 1M8
Toll Free: 1-888-608-2111
10 Milner Business Ct #300,
Scarborough, ON
M1B 3C6
Toll Free: 1-888-608-2111
*consultation offices

DISCLAIMER: Please be advised that the header image and other images throughout this website may include both lawyer and non-lawyer/paralegal employees of Preszler Injury Lawyers and DPJP Professional Corporation and unrelated third parties. Our spokesperson John Fraser, or any other non-lawyer/paralegals in our marketing is not to be construed in any way as misleading to the public. Our marketing efforts are not intended to suggest qualitative superiority to other lawyers, paralegals or law firms in any way. Any questions regarding the usage of non-lawyers in our legal marketing or otherwise can be directed to our management team. Please also note that past results are not indicative of future results and that each case is unique. Please be advised that some of the content on this website may be out of date. None of the content is intended to act as legal advice as each situation is independent and unique and requires individual legal advice from a licensed lawyer or paralegal. For legal advice on your individual situation – we can provide legal guidance after you have contacted our firm and we have established a lawyer-client relationship contractually. Maximum contingency fee charged is 33%. Finally, our usage of awards and logos for awards does not suggest qualitative superiority to other lawyers, paralegals or law firms. All awards received from third party organizations have been done so through their own reasonable evaluative process and do not include any payment for these awards except for the use of the award logos for our marketing assets.