Do you have to pay taxes on long term disability settlement from work place?
This depends. If your benefits are under Worker’s Compensation insurance, these generally aren’t taxed because they aren’t considered earned income under tax laws.
However, if you receive disability benefits from the Social Security Administration, you would have to pay taxes on your benefits if your federal tax return is filed as an “individual” and if your total income is more than $25,000. If you’re married, you will be held liable for taxes if the total income of you and your spouse is more than $32,000.
