Private Disability Policy

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  • JT2307
    Senior Member
    • Jan 2009
    • 105

    #1

    Private Disability Policy

    I have a self employed client that has been paying on a private disability policy for almost 30 years and now he has to use the policy. When he started it with New York Life his tax preparer at the time told him if he didn't deduct the premiums when and if he had to use the policy that none of it would be taxable.

    Is this correct?
  • Burke
    Senior Member
    • Jan 2008
    • 7068

    #2
    A sole proprietor or other individual taxpayer would not have been able to deduct premiums on a disability policy for himself. He did not really have a choice. The benefits from a self-paid disability policy should not be taxable income.

    Comment

    • ATSMAN
      Senior Member
      • Jul 2013
      • 2415

      #3
      Originally posted by Burke
      A sole proprietor or other individual taxpayer would not have been able to deduct premiums on a disability policy for himself. He did not really have a choice. The benefits from a self-paid disability policy should not be taxable income.
      Correct, I too have a NY Life disability policy about 35 years old!
      Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

      Comment

      • JT2307
        Senior Member
        • Jan 2009
        • 105

        #4
        thanks

        Thanks for the quick response.

        Comment

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