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My husband has Progressive Primary Multiple Sclorosis (PPMS) and has been approved for short term disability for 85 days starting Oct 16, 2025. Based on the physicians statement, it is unlikly that he will be able to return to work and will be applying for long term disability.
The LTD benefit is at risk of being treated as a taxable income due to a plan change effective Jan 1, 2026. The current plan explicitly states that LTD benefits are non-taxable because employees pay 100% of the premiums. However, because of the 17 week waiting period ends around Jan 20-Feb11 (apologies, I'm not too sure of the exact date), his LTD payment will commence under the new plan rules.
This issue has very significant financial implications for my family's stability. Please let me know if you can assist in the next best course of action.
Which policy applies to your husband's claim is typically determined by identifying which policy was in place on his "date of disability" - which is usually the day he stopped working because of his disability. That said, this can depend on the terms of your policy/policies. If the insurer does officially determine that this is a taxable benefit, first make sure that you have the insurer's explanation and justification of this in writing, and then contact our office and send us a copy of the letter from the insurer so we can advise if their analysis was correct.
In addition, you can have your husband apply for the Disability Tax Credit at: https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit.html.
In addition, you can have your husband apply for the Disability Tax Credit at: https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit.html.