Does Disability Insurance Count As Earned Income? 
Disability insurance can count as taxable income or it can be tax free . The simple way to determine if disability income benefits are going to be taxed or not is by determining who pays the premiums ? If you have your disability through an employer who pays your premiums and deducts them from the company taxes , then yes your disability benefits are taxed as income . If you purchase disability insurance and you pay the premiums which are not tax deductible then your disability benefits are tax free . Always consult a professional tax advisor as well when it comes to your taxes . 