Can I Claim Disability Insurance On My Taxes? 
There are rules on deductions or the business expensing of disability insurance premiums . If your business fits the IRS approved criteria , the company can deduct the premium . Keep in mind that deducting disability premiums also re-characterizes the benefits as taxable as ordinary income at the policy beneficiary 's effective tax bracket rate . The good news is you can cover up to 80 % of your compensation . 