2) Taxable Disability Insurance Amount (MAGI Only)

Official source

The customer is getting long-term disability benefits of $1,500 per month. The proof provided by the employer shows that the customer’s long-term disability premiums were split between the employer and the customer with each paying half. The employee’s half of the premiums were paid with after-tax income.

Since half of the premium was paid by the employee with after-tax income, half of the $1,500 payment is excluded from counting as income. The other half of the payment is counted since the other half of the premium was paid by the employer.

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2) Taxable Disability Insurance Amount (MAGI Only)

Official source

The customer is getting long-term disability benefits of $1,500 per month. The proof provided by the employer shows that the customer’s long-term disability premiums were split between the employer and the customer with each paying half. The employee’s half of the premiums were paid with after-tax income.

Since half of the premium was paid by the employee with after-tax income, half of the $1,500 payment is excluded from counting as income. The other half of the payment is counted since the other half of the premium was paid by the employer.