metsfan026 Posted November 23, 2021 Posted November 23, 2021 This is definitely not in my wheel house. Does anyone have any information? I truly appreciate it: I was approved for my disability claim. I do not think they are computing the correct amount that is taxable on one of my benefits, which is also the largest. $3500 a month was paid by Cornell, so that is taxable. But the $21500 was paid by me in after-tax dollars. Based on my understanding, then only 14% should be taxable. However, Cornell told the Hartford that 48% is taxable and they are withholding and will likely report this to the IRS. When I questioned this, HR's reply is below: "There is a standard formula that applies to Long Term Disability payments based on IRS Section 105(a). It takes the average of two years of the total premiums contributed by the employer and all employees and finds a ratio between the two. WCM ratio is 48.27% taxable and 51.73% non-taxable."
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