Do I Have to Pay Taxes on My Disability Benefits?

For many, Social Security disability benefits are the only income available to them and, therefore, all they have to rely on to make ends meet. However, what many people with disabilities and their families wonder when they first begin collecting Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) is whether they have to pay income tax on SSDI and SSI?

Are Disability Benefits Taxed?

The Motley Fool recently featured an article on whether people have to pay taxes on Social Security disability benefits. According to the article, it depends on certain factors. In some cases, disability income will be taxed. Other forms of disability pay are tax-free, and other types of disability benefits can be taxed depending on the circumstances.

One situation where your disability benefits could be taxed involves filing a joint tax return with your spouse. If you do this and your taxable earning plus half your Social Security disability benefits ends up being over $32,000, then your disability pay will be partially taxed. If you file separately from your spouse or you are single, your taxable income plus half your disability pay must add up to more than $25,000 for your disability benefits to be taxed.

A Social Security disability lawyer can help you figure out whether you have to pay income taxes on your benefits, and if so, how much. In addition, an attorney may be able to analyze your situation and find a way to help you lower your income tax liability.

How Can a Disability Lawyer Help Me?

In the video below, Tulsa disability attorney Steve Troutman talks about how our Social Security disability benefits law firm helps people with disabilities and their families in Oklahoma.



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