Disability Insurance and Business Owners

Who do you know who has a small business and has disability insurance?

If so, I can almost guarantee it’s not being taxed correctly.  If the company is paying the DI premiums, then the benefits, when you need them, will be taxable.  That’s a huge difference when you’re sick and your income is already greatly reduced.

I found this problem with a new corporate client just last month.  Their previous accountant had missed it.

They were shocked.  But we fixed it and so if they ever need their disability benefits, they’ll be tax free.

If you don’t think you can afford a good accountant, think again.