Are short term disability payments taxable?

Short-term disability payments are taxable if they come from an employer plan funded with pre-tax money. However, if you pay for the plan yourself or it's funded with after-tax money, then short-term disability payments aren't taxable.

If the payment is taxable, your employer should include it in Box 1 of Form W-2 as part of your wages. If it's not included on your W-2, it's unlikely to be taxable. If the payment isn't taxable, you don't need to report it on your tax return.