If you collect sickness or injury benefits, whether or not you owe taxes on that income depends on who paid for the accident or health plan. For example, if you paid for long-term disability insurance and become eligible to collect disability pay, you likely won't owe taxes on that portion of your income. If your employer paid for your disability insurance, you likely will owe taxes.

Sick pay from your employer for short-term illnesses is typically treated as temporary income that replaces your regular income. So, it's taxable the same as your wages. But if a third-party pays you instead of your employer, it might not be taxable.

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