Are disability insurance benefits tax-free?
Under current Canada Revenue Agency regulations, the disability benefits you receive will be considered non-taxable income if you pay your premiums with after-tax dollars. Essentially, this means that if you deduct your disability insurance premiums on your tax return, you ll have to pay tax on your benefits if you become disabled. Normally, premiums for Office Overhead Expense Insurance may be deducted as a business expense. Check with your tax advisor to be sure that whatever deductions you claim are allowable and do not have negative tax consequences.
