Do I Have to Pay Taxes on My Social Security Disability Benefits?

Do I Have to Pay Taxes on My Social Security Disability Benefits?

If you are considering applying for Social Security Disability benefits, you may be wondering if you will have to pay taxes on them. Social Security Disability benefits are taxable, however, Social Security Income (SSI) payments are not.

Not everyone has to pay taxes on their Social Security benefits. About one-third of the beneficiaries pay taxes on their benefits. You will only be affected if you have substantial income in addition to your Social Security benefits.

If you are married and you file a separate tax return, you will more than likely have to pay taxes on your benefits.

How much Social Security Disability income do you have to include on your income tax return? It depends on the total combined amount of your income and benefits for the tax year.

To find out if any of your benefits are taxable, the base amount of your filing status is compared to the total of:

  • 1/2 of your SSD benefits.
  • All other income, and this includes any tax-exempt interest.

If your income is above these thresholds, you will have to pay taxes on your benefits:

  • If you are single, the head of household, or a qualifying widow(er) - $25,000,
  • If you are married, but filing separately and have lived apart from your spouse for at least one year - $25,000,
  • Married and filing jointly - $32,000,
  • Married, filing separately and lived with your spouse at any time during the tax year - $0.

Are you married and filing a joint return? If so, you and your spouse have to combine your incomes and Social Security benefits when determining the taxable portion of your benefits.

Even if your spouse is not receiving SSD benefits, you must add your spouse’s income to your income when determining if any of your benefits are taxable.

Contact The Zendeh Del Law Firm today!

For further information about Social Security Disability benefits and taxes, contact a Dallas Social Security Disability lawyer from our office. We are A+ Rated by the BBB, we haveover 30 years of collective experience, and we have successfully resolved thousands of cases – call today!