Will I Pay Taxes on My Social Security Disability Insurance Benefits?
Feb. 23, 2018
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.