Paying Taxes on SSDI
Generally speaking, you do not have to pay taxes on Social Security disability benefits. The only time that you might have to is if you have other substantial income in addition to your benefits (such as spousal income or something other than earned income).
Filing as an “individual”
If your combined income is:
- $25,000 or less, you will pay no income tax.
- Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefit.
- More than $34,000, up to 85% of your benefit may be taxable.
Filing a join return
If your combined income is:
- $32,000 and less, you will pay no income tax.
- Between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefit.
- More than $44,000, up ot 85% of your benefit may be taxable.
Your adjusted gross income
+ Nontaxable interest
+ ½ of your Social Security benefits
= Your “combined income”
Income Taxes and Social Security Supplemental Income Benefits
Although social security benefits are taxable, you do not have to pay taxes on SSI because your income levels will not be high enough to trigger federal income taxation. Individual who make $25,000 or less annually do not have to pay income tax.
If you are a joint filer, you can earn up to $32,000 and not be subject to federal income taxation. Because SSI is a needs based program, if your income exceeds these levels, it is likely that you will lose your SSI benefit.
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