Supplemental Security Income (SSI) benefits are not taxed, and for most people, Social Security disability insurance (SSDI) benefits are not taxed either. However, about one third of SSDI recipients do pay some taxes on their benefits, because of their spouse’s income or other income.
If you do have additional income, here is how to figure out whether you will owe taxes on your Social Security benefits. (This applies to retirement and survivors’ benefits as well as disability benefits.)
First, calculate your “combined income,” which is half of your Social Security benefits, plus your adjusted gross income, plus nontaxable interest.
You may have to pay taxes on up to 50 percent of your Social Security benefits if your combined income is more than:
You may have to pay taxes on up to 85 percent of your Social Security benefits if your combined income is more than:
Each January, you will get a 1099 from Social Security showing the benefits you received in the previous year, which you can use to file your taxes. If you do have to pay taxes on your SSDI benefits, you can choose to have taxes withheld from your benefits, or make quarterly estimated payments to the IRS.
The information on this website does not constitute legal advice. Use of this website, including the contact form or comments form, does not establish an attorney-client relationship. In Colorado and Florida, Brendan Conley practices Social Security disability law exclusively. Attorney charges no fee unless your case is successful; clients may be responsible for their own costs, such as medical costs. Copyright Brendan Conley 2013-2020. Colorado: 1400 16th St. Ste. 400, Denver, CO 80202. Phone: 720-213-5334. Fax: 720-228-2495. Florida: 7320 E. Fletcher Ave. Tampa, FL 33637. Phone: 813-444-2889. Fax: 813-347-9862.