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Posted by Harlan Lunsford on February 20, 2008, 5:57 pm
Please log in for more thread options Benjamin Yazersky CPA wrote:
>> curiousgeorge...@hotmail.com wrote:
>>> My sister received income from disability insurance in 2007.
>>> Should she expect a form that reports the income and deductions?
>>> If so, what form?
>>> Or would the income and deductions be reported on the W-2
>>> from her employer?
>>> Where does she report the income on Form 1040?
>>> (The answer is self-evident if all this should be reported on the
>>> W-2 from her employer.)
>>> She remained an employee while receiving disability payments.
>>> This was not worker's compensation.
>>> The insurance is underwritten by a third party. It is part of a
>>> voluntary disability insurance plan offered by her employer.
>>> Premiums were paid by a deduction from her paychecks.
>>> FICA was withheld from the disability payments, but not
>>> income taxes (surprise?).
>> She should have already received a W2 from the third party IF those
>> premiums were "pre tax". And it sounds like it, since FICA was withheld.
>> this is what I've seen from Unum, a big insurance company up in
>> Maine.
>>
>> ChEAr$,
>> Harlan Lunsford, EA n LA
>>
>> --
>
>
> That w2 from the Ins co should NOT be FICA or medicare wages
>
>
I agree; BUT.... it often is. However, just FICA and not the 1.45%
for medicare. Go figure.
(They don't)
ChEAr$,
Harlan
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