In 2008 I received disability benefits. I pay for the short and long term insurance with post tax dollars thru payroll deduction. I thought that since I paid with post tax dollars the benefits would be tax free. But I received a W2 from the insurance company showing the benefits as taxable income. They also withhelded Fed and State income tax as well as SS and Medicare. Do I have to pay tax on this income? If not what do I do about the W2 showing it as income?
(Asked 04/05/09, Views 56)