Do I Have to Pay Taxes on Social Security Benefits?

As the April tax filing deadline looms, make sure that you protect yourself by including your Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits in your filing status.  Photo of money

Remember, you may need to pay taxes on any income you received from the Social Security Administration (SSA) last year. If you owe money, it will depend on a number of issues, including your marital status and overall household income. In many cases, beneficiaries do not have to pay taxes because their income is too low. However, you must still file your taxes—the failure to do so could result in penalties and criminal charges.

By this point of the year, you should have received a Form SSA-1099 detailing the total amount of benefits you received last year. While this is helpful, it does not detail what portion or percentages of your benefits are taxable. Remember, if you have concerns about your taxes and how much you should be paying or how much you should receive in a refund, it may be wise to speak to an accountant or tax expert. In addition to the income you received from the SSA, keep in mind, items like investments or student loan interest payments, as well as a spouse or dependant’s income, can also affect whether or not you will owe taxes.

Speaking to an Attorney About Social Security Benefits

While taxation may only affect people who have collected benefits, if you are in the process of applying for or appealing a Social Security claim, it may be a good idea to speak to an attorney. As we mentioned in Monday’s post, working with an attorney may help improve your chances at receiving benefits. A Social Security attorney can help you prepare paperwork and any documentation needed to obtain benefits.

If you are interested in applying for SSDI or if you have questions about the process, you can visit our FAQ page. Here, we answer many questions people have about the difficulties they may encounter when applying for benefits.

Troutman & Troutman, P.C. – Tulsa Social Security disability attorneys


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