Will My Social Security Disability Benefits Be Taxed?

Most people will not have their disability benefits taxed. In truth, only around one-third of beneficiaries will be required to pay taxes on their benefits. Below we’ll highlight several of the factors which may make it necessary to pay taxes on your disability benefits:

If the income on your federal tax return is more than $25,000 and you filed as an “individual”, you may have to pay taxes.
If the joint return with you and your spouse has a combined income of more than $32,000, then there is a chance you’ll have to pay taxes.
Finally, if you file a separate return despite being married, you will likely have to pay taxes on your benefits.

These are just some of the circumstances which may require you to pay taxes on your disability benefits. You can find out more information by contacting the Internal Revenue Service or a tax professional.

Is My Social Security Disability Backpay Taxable?

Receiving disability backpay can increase the taxable amount of income you’ve received that year by a substantial amount. Determining whether or not you’ll have to pay taxes on your benefits will come down to looking at several factors. The first set of factors are the ones we outlined above. You need to look at the total income you have from all sources and how you file your taxes. But even after factoring in those amounts, there are still more things you have to consider.

If you figure out your income for the present year and see that you’ll have to pay taxes on it, you still have options available to you to reduce or eliminate what you owe. The IRS gives you the opportunity to allocate disability backpay to the year in which it should have been received. With your disability backpay, you should also receive a form from Social Security which is called the SSA-1099 form. With this you’ll be able to see how much of the disability backpay was owed to you per year. Then with this information, you’ll be able to determine whether you should have paid taxes on your benefits for any of the previous years. Any amount that you have to pay on your benefits does have to be paid in the current year, but by properly attributing the backpay into the correct period of time you will likely be able to reduce the amount you owe.

We strongly suggest that you seek the advice of a tax professional when filing your tax return which involves Social Security benefits.

Taxation of SSDI Benefits

Will My Social Security Disability Benefits Be Taxed?

Is My Social Security Disability Backpay Taxable?

Need help applying for SSDI?

Taxation of SSDI Benefits

Will My Social Security Disability Benefits Be Taxed?

Is My Social Security Disability Backpay Taxable?

Need help applying for SSDI?

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