Are my disability benefits taxable? The Internal Revenue Service (IRS) considers disability benefits under your employer sponsored plan a continuation of your salary; better known as a Third Party Sick Pay plan.  Whether your disability benefits are taxable depends on your level of premium contribution. In general, if you pay 100% of the premium for your coverage with post-tax dollars, your disability benefits are tax-free. If your employer pays 100% of the premium, benefits are taxable. If you and your employer each pay a share of the premium, benefits are taxed proportionally based on applicable IRS rulings.  Each claim is unique and your taxability will be dependant on the information provided to us by your employer at the time your claim is submitted.  Reference http://www.irs.gov/pub/irs-pdf/p15a.pdf      Section 6 Third Party Sick Pay   Starting with page 14

What type of tax document will I receive in order to report my disability benefits on my income tax return? Disability benefits will be reported to you on IRS form W-2.

Will I receive a W-2 even if my benefits were non-taxable? Yes. Your benefits will be reported in Box 12a and coded with a "J". This means benefits were paid to you but are excluded from your taxable income. Any amount reported in this box does not have to be included on your personal tax return. Any amount in Box 1 is taxable and does have to be reported.

Will the W-2 come from my employer or Unum?  It will depend on the arrangement your employer has with Unum.  In a large percentage of cases, Unum will prepare and mail to you your W-2. If you had regular earnings from your employer, you will receive a W-2 from your employer and a W-2 from Unum.  However, in some cases, employers have opted to include disability benefits with their W-2.  You may call the Tax Reporting Group at 1-800-845-2290 to verify if Unum is preparing your W-2.

If Unum prepares my W-2, when can I expect to receive it? All W-2s for the 2012 tax reporting year will be mailed by Unum by January 31, 2013.  Please allow ample time for delivery by the US Postal service before calling to check on the status.  Should you need a copy of your W-2, you may call 1-800-845-2290 to request a copy of your W-2.  Please note all copies will be mailed.  We are not able to fax copies.  All requests for copies will be handled within 24 hours.  Please allow 4 to 6 business days for mail delivery.

Who do I call if I feel my W-2 is not correct? Please call the Tax Reporting Group at 800-845-2290.

What happens when I receive a Social Security or Worker's Compensation Refund and make a repayment to Unum? Any portion of the refund that applies to the benefits paid in the current year will be deducted out of the total Unum pays during the current year when Unum prepares the W-2 in January.  You will receive notification from Unum as to how much, if any, of the refund is applicable to a prior year.  This amount should be taken as a deduction in the year in which you supplied the refund.  Please contact your tax preparer regarding this deduction and refer him/her to IRS Publication 525, section titled “Miscellaneous Taxable Income-Repayments.”  With this information, your tax preparer can appropriately deduct the repayment.  Reference http://www.irs.gov/pub/irs-pdf/p525.pdf      Repayments   Starting with page 36

I received a 1099-INT. What is this and why did I get one? IRS tax form 1099-INT represents interest that was paid to you during the year by Unum.  If you were the beneficiary of a life insurance policy and received death proceeds during the year, any interest earned before such payment was made will be reported on form 1099-INT. Please consult your tax advisor regarding the taxation of this payment. Reference http://www.irs.gov/pub/irs-pdf/i1099int.pdf

I received a 1099-MISC. What is this and why did I get one? Unum is required to report any payment made in the course of doing business.  Some payments included on form 1099-MISC are for long term care payments to health care facilities, payments made to medical providers and survivor income benefits, among others.  Please consult your tax advisor regarding the taxation of these payments.  Reference http://www.irs.gov/pub/irs-pdf/i1099msc_12.pdf

Will Unum please withhold income tax for me? Can I make changes to my income tax withholding amounts? Please contact your dedicated Disability Specialist handling your claim for any federal and state income tax withholding requests or changes.  All requests must be in writing.  You can print off the form from the IRS website, complete it and fax or mail the form to us at the number or address below.

http://www.irs.gov/pub/irs-pdf/fw4s.pdf: Fully Insured Plans
http://www.irs.gov/pub/irs-pdf/fw4.pdf: Self Insured Plans

Mail to:
The Benefits Center
P.O. Box 100158
Columbia, SC 29202-3158

Fax: 800-447-2498 for Eastern/Central Standard Time
Fax: 877-851-7624 for Pacific Standard Time

Other questions? Please contact your dedicated Disability Specialist for other questions regarding your claim.  You may also contact the Tax Reporting Group at 1-800-845-2290 for tax related questions.

I received a 1099-INT. What is this and why did I get one? IRS tax form 1099-INT represents interest that was paid to you during the year by Unum.  If you were the beneficiary of a life insurance policy and received death proceeds during the year, any interest earned before such payment was made will be reported on form 1099-INT. Please consult your tax advisor regarding the taxation of this payment. Reference http://www.irs.gov/pub/irs-pdf/i1099int.pdf

I received a 1099-MISC. What is this and why did I get one? Unum is required to report any payment made in the course of doing business.  Some payments included on form 1099-MISC are for long term care payments to health care facilities, payments made to medical providers and survivor income benefits, among others.  Please consult your tax advisor regarding the taxation of these payments.  Reference   http://www.irs.gov/pub/irs-pdf/i1099msc_12.pdf

I received a 1099-LTC. What is this and why did I get one? Unum is required to report any long term care benefits paid during the year on IRS form 1099-LTC.  The long term care benefits paid by Unum are per-diem plan.Reference http://www.irs.gov/pub/irs-pdf/p525.pdf      Sickness and Injury Benefits Long-term Care Insurance Contracts   Starting with page 17

I received a 1099-MISC.What is this and why did I get one? Unum is required to report any payment made in the course of doing business.  Some payments included on form 1099-MISC are for long term care payments to health care facilities, payments made to medical providers and survivor income benefits, among others.  Please consult your tax advisor regarding the taxation of these payments.  Reference http://www.irs.gov/pub/irs-pdf/i1099msc_12.pdf