Why Disability Insurers Request Your Tax Return Records

Author: Disability Attorneys Dell & Schaefer
Published: 2010/09/16 - Updated: 2026/01/11
Publication Type: Informative
Category Topic: Claims - Related Publications

Page Content: Synopsis - Introduction - Main - Insights, Updates

Synopsis: This information outlines the legitimate reasons disability insurance companies request tax documentation from claimants during the claims process. Written by disability insurance attorneys specializing in ERISA and private disability claims, the guidance addresses common questions faced by those filing for benefits. Understanding why insurers need tax returns helps claimants prepare proper documentation and avoid delays, particularly important for people with disabilities who may be navigating complex residual disability calculations or multiple income sources. The explanation covers verification of work status, benefit calculation methods, and investigation of pre-disability occupations - knowledge that proves valuable whether dealing with private policies or employer-sponsored group plans - Disabled World (DW).

Introduction

Why Does the Disability Insurance Company Request My Tax Returns?

The insurance companies are going to ask for your tax returns for a handful of reasons.

Main Content

First and foremost, it's just to make sure you're not working if you're telling them that you are not working.

Secondly, they may ask for them and if you have a residual disability claim, that's going to be a basis to determine what your previous ability income was and when it comes to determining what your benefit amount is going to be under that residual disability definition.

Also, they may look on your tax returns and see that you have involvement in other corporations, so they may want to investigate that to really determine what your pre-disability occupation was.

Some policy provisions will have it that they will consider every job you're doing.

So the tax returns are a way for the insurance companies to fully investigate so they have an idea in their mind of what your job duties were, or in the event of an ERISA group claim, it may be something that you may be able to do for any occupation definition.

So there are various different reasons for it, but it's not uncommon that they ask you for your tax returns.

Insights, Analysis, and Developments

Editorial Note: While the request for tax returns might initially seem intrusive to disability claimants already facing health challenges, understanding the insurer's rationale can transform this requirement from an obstacle into an opportunity. Properly organized tax documentation not only expedites the claims process but also provides objective evidence of your pre-disability income and work activities - information that becomes crucial when calculating benefit amounts or defending against wrongful denials. For anyone navigating a disability claim, treating tax return requests as a standard part of building your case, rather than an invasion of privacy, often leads to smoother outcomes and faster resolution of benefits you're entitled to receive - Disabled World (DW).