Disability benefits: 

a) are tax as capital gains. 

b) may be spent in whatever way the beneficiary sees fit. 

c) must be spent on qualified medical expenses first. 

d) are taxed as ordinary income.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Heres a stepbystep explanation of the tax treatment of disability benefits Disability ben... View the full answer