Artículo Cost paid by you.. Cost paid by you.

id="en_US_2025_publink1000236652"> Cost paid by you. If you pay the entire cost of a health or accident insurance plan, don’t include any amounts you receive from the plan for personal injury or sickness as income on your tax return. If your plan reimbursed you for medical expenses you deducted in an earlier year, you may have to include some, or all, of the reimbursement in your income. See What if You Receive Insurance Reimbursement in a Later Year? in Pub. 502, Medical and Dental Expenses. Cafeteria plans. In most cases, if you’re covered by an accident or health insurance plan through a cafeteria plan, and the amount of the insurance premiums wasn’t included in your income, you aren’t considered to have paid the premiums and you must include any benefits you receive in your income. If the amount of the premiums was included in your income, you’re considered to have paid the premiums, and any benefits you receive aren’t taxable. Disability Pensions If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. You must report your taxable disability payments on line 1h of Form 1040 or 1040-SR until you reach minimum retirement age. Minimum retirement age is generally the age at which you can first receive a pension or annuity if you’re not disabled. . You may be entitled to a tax credit if you were permanently and totally disabled when you retired. For information on this credit and the definition of permanent and total disability, see Pub. 524, Credit for the Elderly or the Disabled. . Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. Report the payments on lines 5a and 5b of Form 1040 or 1040-SR. The rules for reporting pensions are explained in Disability Pensions in Pub. 575. For information on disability payments from a governmental program provided as a substitute for unemployment compensation, see Unemployment Benefits in chapter 8. Retirement and profit-sharing plans. If you receive payments from a retirement or profit-sharing plan that doesn’t provide for disability retirement, don’t treat the payments as a disability pension. The payments must be reported as a pension or annuity. For more information on pensions, see Pub. 575. Accrued leave payment. If you retire on disability, any lump-sum payment you receive for accrued annual leave is a salary payment. The payment is not a disability payment. Include it in your income in the tax year you receive it. Military and Government Disability Pensions Certain military and government disability pensions aren’t taxable. Service-connected disability. You may be able to exclude from income amounts you receive as a pension, an annuity, or similar allowance for personal injury or sickness resulting from active service in one of the following government services. The armed forces of any country. The National Oceanic and Atmospheric Administration. The Public Health Service. The Foreign Service. Conditions for exclusion. Don’t include the disability payments in your income if any of the following conditions apply. You were entitled to receive a disability payment before September 25, 1975. You were a member of a listed government service or its reserve component, or were under a binding written commitment to become a member, on September 24, 1975. You receive the disability payments for a combat-related injury. This is a personal injury or sickness that: Results directly from armed conflict; Takes place while you’re engaged in extra-hazardous service; Takes place under conditions simulating war, including training exercises such as maneuvers; or Is caused by an instrumentality of war. You would be entitled to receive disability compensation from the Department of Veterans Affairs (VA) if you filed an application for it. Your exclusion under this condition is equal to the amount you would be entitled to receive from the VA. Pension based on years of service. If you receive a disability pension based on years of service, in most cases you must include it in your income. However, if the pension qualifies for the exclusion for a service-connected disability (discussed earlier), don’t include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. You must include the rest of your pension in your income. Retroactive VA determination. If you retire from the armed services based on years of service and are later given a retroactive service-connected disability rating by the VA, your retirement pay for the retroactive period is excluded from income up to the amount of VA disability benefits you would have been entitled to receive. You can claim a refund of any tax paid on the excludable amount (subject to the statute of limitations) by filing an amended return on Form 1040-X for each previous year during the retroactive period. You must include with each Form 1040-X a copy of the official VA determination letter granting the retroactive benefit. The letter must show the amount withheld and the effective date of the benefit. If you receive a lump-sum disability severance payment and are later awarded VA disability benefits, exclude 100% of the severance benefit from your income. However, you must include in your income any lump-sum readjustment or other nondisability severance payment you received on release from active duty, even if you’re later given a retroactive disability rating by the VA. Special statute of limitations. In most cases, under the statute of limitations, a claim for credit or refund must be filed within 3 years from the time a return was filed or 2 years from the time the tax was paid. However, if you receive a retroactive service-connected disability rating determination, the statute of limitations is extended by a 1-year period beginning on the date of the determination. This 1-year extended period applies to claims for credit or refund filed after June 17, 2008, and doesn’t apply to any tax year that began more than 5 years before the date of the determination. Terrorist attack or military action. Don’t include in your income disability payments you receive for injuries incurred as a direct result of a terrorist attack or military action directed against the United States (or its allies), whether outside or within the United States or from military action. See Pub. 3920 and Pub. 907 for more information. Long-Term Care Insurance Contracts Long-term care insurance contracts in most cases are treated as accident and health insurance contracts. Amounts you receive from them (other than policyholder dividends or premium refunds) in most cases are excludable from income as amounts received for personal injury or sickness. To claim an exclusion for payments made on a per diem or other periodic basis under a long-term care insurance contract, you must file Form 8853 with your return. A long-term care insurance contract is an insurance contract that only provides coverage for qualified long-term care services. The contract must: Be guaranteed renewable; Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed; Provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract, may only be used to reduce future premiums or increase future benefits; and In most cases, not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer or the contract makes per diem or other periodic payments without regard to expenses. Qualified long-term care services. Qualified long-term care services are: Necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance and personal care services; and Required by a chronically ill individual and provided pursuant to a plan of care prescribed by a licensed health care practitioner. Chronically ill individual. A chronically ill individual is one who has been certified by a licensed health care practitioner within the previous 12 months as one of the following. An individual who, for at least 90 days, is unable to perform at least two activities of daily living without substantial assistance due to loss of functional capacity. Activities of daily living are eating, toileting, transferring, bathing, dressing, and continence. An individual who requires substantial supervision to be protected from threats to health and safety due to severe cognitive impairment. Limit on exclusion. You can generally exclude from gross income up to $420 a day for 2025. See Limit on exclusion , under Long-Term Care Insurance Contracts , under Sickness and Injury Benefits in Pub. 525 for more information. Workers’ Compensation Amounts you receive as workers’ compensation for an occupational sickness or injury are fully exempt from tax if they’re paid under a workers’ compensation act or a statute in the nature of a workers’ compensation act. The exemption also applies to your survivors. The exemption, however, doesn’t apply to retirement plan benefits you receive based on your age, length of service, or prior contributions to the plan, even if you retired because of an occupational sickness or injury. . If part of your workers’ compensation reduces your social security or equivalent railroad retirement benefits received, that part is considered social security (or equivalent railroad retirement) benefits and may be taxable. For more information, see Pub. 915, Social Security and Equivalent Railroad Retirement Benefits. . Return to work. If you return to work after qualifying for workers’ compensation, salary payments you receive for performing light duties are taxable as wages. Other Sickness and Injury Benefits In addition to disability pensions and annuities, you may re