Question
Janai (single) paid after-tax premiums for a long-term disability plan through her employer. After an illness, she retired in December 2021 at age 62. She
Janai (single) paid after-tax premiums for a long-term disability plan through her employer. After an illness, she retired in December 2021 at age 62. She elected to delay collecting social security. The disability policy paid $2,800 per month.
If she had no other income for 2022, what would her taxable income be?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To determine Janais taxable income for 2022 considering her retirement and disability policy payments we need to follow these steps Determine the taxable portion of the disability policy payments Disability benefits are generally not taxable if the premiums were paid with aftertax dollars In this case Janai paid aftertax premiums for the longterm disability plan so the disability benefits should not be taxable Calculate the total disability policy payments for the year Monthly disability policy payment ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
