Posted on March 17, 2010.
"I get disability insurance after tax through my employer. Do I pay tax on SS benefits? I understand that I do not pay federal taxes, but I wonder about Social Security and Medicare. Should I pay these taxes. As I said, my disability is payable "after tax" and covers 60% of my salary.
SS and Medicare would be calculated on your gross. The pre-tax/post-tax is generally income tax fair.
ss posttax before tax, and Medicare would be paid on insurance premiums.
No insurance benefits are not income.
Whatever your income is taxed is SS and Medicare, disability and the state
your program after tax you owe, you can only reduce the amount of taxable income on your income, that when you start taking distribution with then be taxed
Like any insurance or pension benefits, disability benefits are considered unearned income and FICA taxes therefore are not paid when benefits are received.
It does not matter if the premium is paid with money before tax or after tax, FICA tax is not paid on benefits.
