Brad was disabled for part of the year, and he received $11,500 of benefits from a disability insurance policy purchased by his employer. Assume that Brad was not previously taxed on the disability insurance premiums paid by his employer. Brad must include all $11,500 of benefits in his gross income because he was not taxed on the disability insurance premiums paid by his employer.

Question

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According to the IRS, if the employer paid for the disability insurance premium, and the employee did not include those premiums in their taxable income, then any benefits received from the policy would be taxable income. Therefore, Brad must include all $11,500 of benefits in his gross income because he was not taxed on the disability insurance premiums paid by his employer.

Brad Was Disabled for Part of the Year, and He