skip navigation
Search Help
Navigation Help

Tax Map Index
ABCDEFGHI
JKLMNOPQR
STUVWXYZ#

International
Tax Topic Index

Affordable Care Act
Tax Topic Index

Exempt Organization
Tax Topic Index

FAQs
Forms
Publications
Tax Topics
Worksheets

Comments
About Tax Map

IRS.gov Website

Frequently Asked Tax Questions

Interest, Dividends, Other Types of Income - Life Insurance & Disability Insurance Proceeds

  1. Do I report proceeds paid under a life insurance contract as taxable income?
  2. Is the long-term disability I am receiving considered taxable?

Rev. date: 11/10/2016

Do I report proceeds paid under a life insurance contract as taxable income?


Rev. date: 11/14/2016

Is the long-term disability I am receiving considered taxable?

You must report as income any amount you receive for your disability through an accident or health insurance plan paid for by your employer:
Amounts you receive from your employer while you're sick or injured are part of your salary or wages.
You can generally exclude from income payments you receive from qualified long-term care insurance contracts as reimbursement of medical expenses received for personal injury or sickness under an accident and health insurance contract. Also, you can exclude from income certain payments received under a life insurance contract on the life of a terminally or chronically ill individual (accelerated death benefits). Refer to Publication 907, Tax Highlights for Persons with Disabilities.
You may be able to deduct your out-of-pocket expenses for medical care above any reimbursements, if you're eligible to itemize your deductions. You'll need to review Publication 502, Medical and Dental Expenses.
For more information, refer to Publication 907