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Disability Payments » From: Cameron Park, CA Dear TaxMama: Are disability payments from a private company taxable in California? Thanks. Jeanine Dear Jeanine, Yes. And No. It all depends. Basically, if you pay for the disability coverage yourself and don't take a medical deduction for the premiums, it's not taxable. If you took a deduction, it is. Same thing applies to your employer's disability policy. If they deducted the premiums, you're paying taxes on the benefits. If they didn't, the money is yours, free. The plan administrator or your employer would be able to tell you. But, I suspect, if you're asking, they've already told you that the money is taxable - and you know it doesn't need to be .... Shame on them. It's not that large a premium that they couldn't have afforded to skip the deduction to help their employees. Best wishes, Eva Rosenberg Your TaxMama

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