Disability income is

		tax-free if you pay the disability insurance premiums.
		taxed at the long-term capital gains rate.
		taxed as ordinary income.
		taxed at the short-term capital gains rate.

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Expert Solution

Disability is taxed as Ordinary Income.

A person has to pay taxes on disability income only if his/her total income falls over a certain threshold (depending on the jurisdication). But, in majority of the cases, Disability Income is not taxed.

jeff jeffy answered 2 years ago

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