How is short-term disability reported to IRS?
James Craig
Published Feb 24, 2026
Your employer paid half the premiums, and you paid the other half through pre-tax withholding from your paychecks. You must therefore report the entire $9,000 as taxable income on your Form 1040 tax return.
Do I get a 1099 for short-term disability?
You may not have any income to report. If this is from California EDD, unless you were previously receiving unemployment and became disabled during that period, this isn’t taxable on either your federal or state income taxes.
Where does short-term disability show on W2?
The employer must match FICA deductions when completing quarterly tax returns. You must furnish Form W-2 to both the employee and the IRS. The W-2 must show the portion of disability benefits excluded from the employee’s gross income (i.e., that portion attributable to employee contributions) in Box 13 of the form.
Where do I report my short term disability income?
As in previous and current years, for 2017 you should report only the income you received from your employer for your short-term disability. All taxable income should be reported on Form W-4S, Request for Federal Income Tax Withholding From Sick Pay. IRS: Is the long-term disability I am receiving considered taxable?
When is short term disability income not taxable?
When Short Term Disability Payments Aren’t Taxable. If the box includes disability payments your employer paid in your gross income, you must report the payments as taxable income – as long as your employer pays for the coverage in part or in full. When employers provide disability benefits to employees and pay entirely for the coverage,…
How are disability benefits reported on the tax return?
The Standard reports taxable benefits based on the terms of the group policy. Discrepancies between the terms of the group policy and the actual plan administration can result in complicated tax reporting problems for you, your employees and The Standard. Therefore, please make premium payments as specified in the group policy.
How are short term disability benefits taxed in Massachusetts?
The taxability of short-term disability benefits in Massachusetts is unclear because of the different ways employers can fund premiums for the Paid Family and Medical Leave program. Both pre-tax employee and employer contributions fund New Jersey state temporary disability. Therefore, the claims payment is federal taxable income.