Question

It is receiving $3,000/month from a disability income policy in which T's employer had paid the premiums. How are the $3,000 benefit payents taxable?

Answer 1

You've asked an unclear question, the subject here is T.

Answer:

The benefits are taxable to T.

Explanation:

Note that, a disability income insurance policy provides a specific monthly  benefits to insureds who are disabled as a result of injury or illness (disability).

Remember, also that T's employer had paid the premiums, and according to federal law if your an employer paid the disability insurance premiums, then the disability income is taxable to the employee (in this case T).

Answer 2

Answer:

T must pay income taxes for the $3,000 he receives.  

Explanation:

If the beneficiary of the disability benefits paid the premiums, then the money received is tax free. On the other hand, if the premiums were paid by someone else (in this case his employer), then the benefits will be taxed as normal income.