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Long-Term Disability on W-2

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    #16
    If the taxpayer would

    have had an election to pay it with after tax dollars Box1 would have also been zero and information in other box would have had it. I had one he called when the election was in front of him in 1987 and I told him to take it after tax. As luck or bad luck would have it from age 57 to age 65 he received in excess of $200,000 a year. No, I do not want to argue the merits of normally taking it as pretax. The average is you will never use the policy, but it you do-do you want it taxable????????? So even if I was "maybe" giving the wrong advice-it did end up to be the best and he reminds with thanks every time I see him. He has a golf handicap of about 12.

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      #17
      My advice has always to pay for LT disability after tax. I knew this going in the last time it was offered...and knew I may in the future have to take time off for a particulary onerous medical treatement. As it was, I did, and the pay tax-free was about what I was getting for working after taxes were taken out.

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