Tag Archives: TaxSeason

Could I Be Forced to Pay Taxes on My Disability Benefits?

It can often take a long time to get approval for Social Security disability insurance benefits. If your initial application is denied, you could wind up on a waitlist for an average of 600 days. If you manage to get approval after that, then you may be due back pay on the benefits you should have received during the application process. However, it might surprise you to learn that this sum could be taxable, and planning appropriately is essential. Will I Have to Pay Taxes on My Disability Benefits? Just like Social Security retirement benefits, disability benefits are taxable depending on your yearly income, your marital status, and other factors. That means your SSDI back-payment could be taxable, depending on how much you made while waiting for approval. For many, this isn’t a problem because they made little while waiting for benefits. However, some individuals who rely on private pay…
Read More »

Posted in Disability Coverage | Tagged , | Leave a comment

How to Improve Your Social Security Benefits During Tax Season

CNBC recently featured an article that discussed methods people can use to improve their Social Security benefits during tax season. What You Need to Do to Maximize Your Social Security Benefits During Tax Season It is always a good idea to review your Social Security Income (SSI) information during tax season. Your main reason for reviewing your SSI benefits at tax time is that you will already be using the necessary documentation to do your taxes. The way that you can ensure that you are receiving the maximum SSI payment available to you is to go over your annual statement. Your SSI annual statement includes your estimated monthly benefits, which are based on the average of your yearly earnings during the 35 years where you earned the most annually. For example, if you discover that any of the years used in determining your 35 highest earning years is inaccurate, correcting…
Read More »

Posted in Social Security | Tagged , | Leave a comment

What You Need To Know About Tax Season And Your SSDI Benefits

April 18th is coming. Are you ready? Tax day is that American tradition that nobody is really eager to greet, but it is inevitable for anyone living and working in our country. Tax day even has significance to people with disabilities who depend on the government to get by. Here are some details you may need to know if you are collecting benefits for disability in our country. Tax Season And Your SSDI Benefits Your Benefits Can Be Taxed: The benefits you receive from the Social Security Administration can count as income, so they need to be reported to the IRS. However, this usually only happens if you make a substantial income in addition to your benefits. So if you are self-employed, have a part-time job, earn interest or dividends—etc.—then you will probably have to pay taxes on some of your benefits. Keep An Eye Out For Paperwork: If you…
Read More »

Posted in Social Security | Tagged | Leave a comment