- 11 - 3. Disability Benefits Included in the stipulated exhibits for this case is literature from Met Life detailing petitioner’s long-term disability insurance which provides an explanation of the taxable consequences resulting from the payout of disability benefits. At trial, petitioner testified that he had selected “Option 3”3 as his long-term disability plan, and asserted that because his monthly contribution (an amount equal to one-sixth) for the premium was deducted from his paycheck ‘after taxes’ that he should accordingly be entitled to exclude from his gross income that amount attributable to his contribution (one-sixth of the approximately $78,000 paid as disability income by Met Life in 2000). However, it is clear from the information provided in the Met Life literature that petitioner is misguided in maintaining this position. First, at LTD-2,4 the brochure describes the taxability of the payouts, stating that “since [the employee] paid for the cost of the LTD coverage on a before tax basis ... the LTD benefits are taxable when you receive them.” Then, at LTD-14, the brochure reads: 3“Option 3” bases long-term disability benefits on 60 percent of the participant’s pre-disability income. 4“LTD” refers to Met Life’s long-term disability policy brochure.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011