Nearly one month into the nation’s tax season and Social Security Disability Insurance benefit, otherwise known as “SSDI” benefit, recipients may be wondering, “Will I pay taxes on my benefits?”
The short answer is – Maybe. It depends.
SSDI benefits may be taxed by the federal government if a recipient has other substantial income in addition to SSDI benefits. For most people SSDI benefits are not taxable. However, approximately one-third of current beneficiaries will pay taxes on their benefits.
For example, if the total amount after combining one-half of a recipient’s benefits plus the recipient’s other income equals more than $25,000.00 in a year and the recipient files a federal tax return as an individual, or if the total amount, including a spouse’s income, equals more than $32,000.00 in a year and the recipient is married and filing jointly, that recipient will have to pay taxes on possibly up to 85% of the recipient’s SSDI income.
For more information regarding whether a recipient will pay taxes on benefits, please contact the Internal Revenue Service, a qualified CPA, or an attorney familiar with tax law.
However, if you, or someone you know, is interested in pursuing a claim for Social Security Disability benefits contact Burke Law, PLLC today for a free consultation.