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ludmilkaskok [199]
3 years ago
14

P is self-employed and owns an individual disability income policy. he becomes totally disabled on june 1 and receives $2,000 a

month for the next 10 months. how much of this income is subject to federal income tax?
Business
1 answer:
klemol [59]3 years ago
6 0
The benefits received from an individual disability insurance policy is not subject to federal income tax.

From what I've read in various online articles, <span>individual disability income insurance benefits are tax free because you have already paid for tax. The premiums you pay are from after-tax dollars. This means that taxes required on insurance disability benefits have already been paid prior to the benefits given. </span>
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