Last year after her pregnancy, my wife received payments from the state of
California's disability insurance program. Are the proceeds from these
payments taxable? Taxable at Federal and/or State level too?
The disability insurance is paid by payroll deductions, but I am not sure if
they are still considered income for the Federal return (or State for that
matter).
If they are taxable, where should I include them? 'Other income'? With the
new rules to eliminate the 'marriage penalty', it would be better for me to
put them as part of my wife's W2s.
Thanks for any input,
Robert
Insurance payments are not taxable. I forget the case but that was settled
around the turn of the century I believe.
The Dawg