Skip to main content
April 13, 2022
Question

Do long term disability insurance payments qualify as PFL

  • April 13, 2022
  • 1 reply
  • 0 views
also, is the tax rate lower if it qualifies

1 reply

April 13, 2022

Yes, they do.  

The income you receive from your employer, a third-party insurer, or the government while you're unable to work due to a serious illness or injury is considered paid family leave (PFL) income.

Typically, companies that offer paid medical leave or disability do so through a third-party insurer.  You may receive a separate W-2 from the insurer to report the PFL income, or you may see the PFL reported as third-party sick pay on your regular, company-issued W-2.

It’s taxed at normal tax rates.

Please see the TurboTax Help article Is medical leave or short-term/long-term disability considered paid family leave? for more information.

 

**Say "Thanks" by clicking the thumb icon at the lower left

**Mark the post that best answers your question by clicking on “Mark as Best Answer”