With April15 fast approaching, we would like to remind Social Security Disability Insurance (SSDI) beneficiaries that they may need to file an income tax return.
Your tax rate is determined by adding half of your SSDI benefit amount with your other income sources, which puts you into a tax bracket. Other factors, including marriage and household dependents, play a role in how much you are taxed.
According to the Social Security Administration (SSA), no one pays federal income tax on more than 85 percent of his or her Social Security benefits based on Internal Revenue Service (IRS) rules. For more information about whether you need to pay federal income taxes, you can visit the SSA website by clicking here.
If you have questions about taxes and SSDI, contact our Tulsa social security lawyers and have them review your situation.
Lump Sum Payments
Lump sum payments are an issue that may come up that may come up when a beneficiary files his or her taxes. Because the SSA has a backlog, sometimes it takes a while for person to receive payments—often resulting in a lump sum payment for previously owed benefits.
This lump sum payment can create issues for recipients, as it can affect the amount of money owed to the IRS. In this circumstance, we would recommend working with a tax assistant or an accountant—sometimes you can make several payments on owed taxes and spread this burden out over time.
Disabled people are also eligible for tax credits and various deductions, so filing correctly is important, as it could save you money. If you are worried about taxes, we suggest visiting the SSA website linked above, where you can download a W-4V form and voluntarily have taxes withheld from future payments.
If you have questions about applying or qualifying for SSDI, contact a Tulsa Social Security Disability attorney for more information about your rights. We offer free consultations; you may reach us by phone at (918) 265-1404.
Troutman & Troutman, P.C. – Tulsa Social Security Disability attorneys