Question
Why is my SSDI taxable income?
The Hartford states a dollar for dollar overpayment of benefits if I get approved for SSDI for me and any dependents has to be paid back to them. What I don’t quite understand is my LTD is not taxable income, and my SSDI will be. So if I get 30,000 in back pay I have to give it all to the Hartford, and then turn around and pay the government $4,500 or more in taxes on the money that wasnt really mine? How is that right? If it is now taxable when the money from the Hartford wasnt, then that at the very least should be deducted from what I have to pay back to them. I am losing out here big time. Is there anything that can be done here?
Answer
Natalie, This is a topic that has been up for quite a bit of discussion recently, and as of right now we unfortunately don’t have a clear cut answer to the question. In some cases we are working on we are awaiting responses from various carriers as to how they will address this point.
