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My spouse was an employee of Sun Life who went on Short-Term then Long-Term Disability.
The Short-Term Disability amounts do appear to get the usual tax deductions while the Long-Term Disability does not appear have federal/provincial taxes deducted showing a balance of zero tax deducted.
Does this mean spouse will need to claim the 2 months (Nov-Dec) of LTD amounts as income and if so - whereabouts on the Turbo Tax would we indicate this amount.
Whether the benefits are taxable or not is based on who paid the premiums. If the benefits are taxable, you'll get a tax slip to enter on your tax return. If you don't get a slip, then the benefits are not taxable and nothing needs to be entered on the return.
As per Sunlife:
Employer-paid short-term disability or long-term disability premiums are not taxable benefits. But any short- or long-term disability benefits you receive in the future from your employer will be taxable. Conversely, if all employees pay their own short or long-term disability premiums, any benefits they receive are tax-free. The same applies to premiums you pay for an individual policy you own. If you pay premiums yourself, using after-tax money, any benefits you receive are tax-free.

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