SSDI Benefits and Taxation: What You Need to Know

SSDI Benefits and Taxation

Calculate Your Disability Benefit

SSDI Taxation Implications

Navigating the tax implications of Social Security Disability Insurance (SSDI) benefits can be a complex process for many recipients. Understanding how these SSDI benefits are taxed is essential to ensure compliance with tax regulations and to effectively manage finances.

Let’s try to demystify the taxation of SSDI benefits.

SSDI Benefits and Tax Season

Social Security Disability Benefits ARE taxable, but most people do not actually pay taxes on those benefits. Those who do pay taxes have other income that when added to their disability benefit exceeds certain thresholds. Disabled people who receive benefits usually can’t work and earn more than a certain amount of money.

Step 1 – Take 50% of the Social Security benefit received during the year and add it to all other income.  

  1. Filing Status is Single – if the above amount exceeds $25,000, then part of your benefit is likely taxable.
  2. Filing Status is Married Filing Jointly – if the above amount exceeds $32,000, then part of your benefit is likely taxable.

50% of a taxpayer’s benefit may be taxable if they are: 

  • Filing single, single, head of household or qualifying widow or widower with $25,000 to $34,000 income.
  • Married filing separately and lived apart from their spouse for all of 2019 with $25,000 to $34,000 income.
  • Married filing jointly with $32,000 to $44,000 income.

85% of a taxpayer’s benefits may be taxable if they are: 

  • Filing single, head of household or qualifying widow or widower with more than $34,000 income.
  • Married filing jointly with more than $44,000 income.
  • Married filing separately and lived apart from their spouse for all of 2019 with more than $34,000 income.
  • Married filing separately and lived with their spouse at any time during 2019.

The IRS has created this great tool that will help you determine whether or not your benefits are taxable and they will tell you just about the exact amount of those benefits that are taxable.  I highly recommend you go through the from in Are My Social Security or Railroad Retirement Tier I Benefits Taxable?.  

Once you figure out your taxable income, you can use the table below to determine our tax rate. Multiple your taxable income by the taxable rate to determine the amount of tax that is due.

Tax RateSingleMarried Filing JointlyMarried Filing SeparatelyHead of Household
10%$0 to $11,000.$0 to $22,000.$0 to $11,000.$0 to $15,700.
12%$11,001 to $44,725.$22,001 to $89,450.$11,001 to $44,725.$15,701 to $59,850.
22%$44,726 to $95,375.$89,451 to $190,750.$44,726 to $95,375.$59,851 to $95,350.
24%$95,376 to $182,100.$190,751 to $364,200.$95,376 to $182,100.$95,351 to $182,100.
32%$182,101 to $231,250.$364,201 to $462,500.$182,101 to $231,250.$182,101 to $231,250.
35%$231,251 to $578,125.$462,501 to $693,750.$231,251 to $346,875.$231,251 to $578,100.
37%$578,126 or more.$693,751 or more.$346,876 or more.$578,101 or more.

See If You Qualify!

SSDI Benefits Calculator

How Much Can I Expect In SSDI Payments?

In 2024, you could be eligible for up to $3,822/month in SSDI benefits.

February 14, 2024

Written by TC Newlin

TC is a disability litigator and one of the managing partners in the Social Security Disability Department at Fleschner, Stark, Tanoos & Newlin. He has had the pleasure of helping thousands of people obtain the benefits they so desperately need.

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February 14, 2024

Written by TC Newlin

TC is a disability litigator and one of the managing partners in the Social Security Disability Department at Fleschner, Stark, Tanoos & Newlin. He has had the pleasure of helping thousands of people obtain the benefits they so desperately need.

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *