Where do I claim Long Term Disability payments received on my 2019 tax return?

Determining if you must claim your Long Term Disability Benefits on your tax return depends on who paid the premiums for the benefits.

 

• Generally, if you pay the entire amount of the disability premiums yourself, your disability benefits will be tax-free. This means your employer has deducted the premiums from your pay and remitted them on your behalf. You will not receive a T4A slip for the benefits and you do not claim as income on your tax return.

 

• If your employer pays all or part of the disability premium, your disability benefits will be subject to income taxes. In this case, you will be issued a T4A slip for the benefits you receive and will report the income and tax withheld on the T4A slip page in TurboTax.
  • If your employer has paid all or part of the premiums, you will likely be issued a letter from your employer and can deduct any premiums you have paid from the taxable amount of benefits received.

Here's a link from TaxTips.ca explaining further the tax implications of Wage-Loss Replacement plans: Disability Insurance - Pay Your Own Premiums!

 

Hello 

My employer puts my long term disability on a T4 slip, shouldn't it be on something else?

 

@auntlindaem Long term disability insurance contributions by your employer are a taxable benefit, so they go on the T4.