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Are Social Security Disability benefits taxable?

By   /  March 3, 2016  /  24 Comments

Learn when Social Security Disability benefits are subject to federal and state income tax.

social-security disability-benefitsWhen the IRS Taxes Social Security Benefits

Whether your Social Security benefits are taxed by the Internal Revenue Service of the Federal government depends on your total income for the year including income wages, self-employment, interest, dividends and other taxable income. IRS filing forms and instructions tell you how to calculate the taxable portion of your benefits. The portion that is taxable depends on your total income.

Generally speaking, if you file an individual federal tax return and your total annual income is more than $25,000, a portion of your benefits will be taxable. If you and your spouse file a joint return and your income is over $32,000, a portion of your SSD benefits will be taxable. Additional rules apply to married couples who are filing separate returns. In each case the IRS provides a worksheet to figure how much is taxable.

When Your State Taxes Social Security Benefits

First of all, many states do not have income tax at all. Among those that do have income tax, many do not tax Social Security benefits, regardless of a person’s total income. Other states follow the federal tax guidelines for the portion of the Social Security Disability benefits they will tax, and still others tax part of the benefits with exclusions more favorable than those given by the federal IRS.

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  • Sharon Lindsey

    My disabled brother recently came to live with me after our mother passed. He was receiving SSI but we were told he should have been collecting SSDI on my father’s record since 1986 and he has been approved for this. We are still waiting for their determination but I was wondering if there is any additional benefit that could be awarded since my mother should have received benefits for caring for a disabled child when my father started to draw his social security? Both parents are deceased. Any insight would be greatly appreciated.

    Thanks much,
    Sharon

    • Kay Derochie

      Dear Sharon,

      If your mother was living with and looking after your brother in any of the preceding six months, you may be able to have her approved for up to six months. The benefits would be paid to your brother and any of his siblings, split equally. If this is applicable, file the claim before the end of August to avoid loss of benefits. Note that the office may not want to take the application until your brother is approved for CDB, but say that you want the claim file now to protect eligibility in retroactive months.

      Sincerely,
      Kay

  • If my son collects ssi on my husband disability will he beable to collect on my ssi since I am on ssdi also

    • Kay Derochie

      Dear Karen,

      Your son’s benefits on his father’s record are not SSI (Supplemental Security Income), they are Social Security dependent benefits. If your own Social Security benefits include a family maximum higher than your own benefit, then your son could receive an increase in benefits based on his father’s and your combined family maximums. You can find out whether your family maximum benefit is higher than own benefit by calling Social Security at 1-800-772-1213.

      Sincerely,
      Kay

  • Crystal

    Hello Kay,

    I am sorry as this question is for another article about the family maximum. I couldn’t find the section area to leave a question so I hope its ok to ask you here. My question is, I was approved for SSDI and my local social security office put in an application for the family maximum benefit for my son. My son recieves SSI by the way. I called SSA about how much he should be receiving and they told me 50% of my SSDI benefits. I forgot to ask them if my son’s SSI would reduce or stay they same because of the family maximum benefit? Thank you

    • Kay Derochie

      Dear Crystal,

      Your child’s SSI will be reduced by all an amount equal to all but $20 of what he receives in Social Security dependent benefits. He may be ineligible for SSI in the month he receives back pay. The back pay will count as income in the month it is received. Any back pay he receives that is carried over from month to month will count toward the SSI resource (assets) limit of $2,000 on the first of the ninth month after the back pay is received. Similarly, for the purposes of deeming excess resources, your Social Security back pay will count toward your $2,000 ($3,000 if you are married and living with your spouse or your child’s father is living in the household) resource limit in the ninth month after receipt. Any excess resources you have will count toward you son’s limit.

      Sincerely,
      Kay

  • Richard blakeman

    I am receiving ssdi and my unsettled workers compensation payments just ended,will my ssdi payments go up?

    • Kay Derochie

      Dear Richard,

      If your SSDI benefits were reduced by your temporary total workers compensation payments, now that the worker’s comp has stopped your benefits should go up. Submit a copy of the paperwork that shows cessation of benefits and expect to wait at least a couple months for the increase to be processed.

      Sincerely,
      Kay

  • Annette

    My boyfriends son mom gets SSD. He is also receiving dependent disability just for being her son. We are unsure if she has to claim him on the taxes? Does she have to or can he do it?

    Thank you

    • Kay Derochie

      Dear Annette,

      Please contact a tax accountant or the IRS to get an answer to your tax question.

      Thank you,
      Kay

  • I am 25 and draw ssi & disability. I’ve been since I was 21 I have 2 children and have never filed since I’ve received it. Since ssi is not taxabul can I still file and clame my children? They have lived with me all year and I’ve supported them will I get the credit for them?

    • Kay Derochie

      Dear Samantha,

      I suggest that you discuss your tax questions with the IRS or a tax accountant.

      Sincerely,
      Kay

  • Joanne marin

    I am in the process of an appeal for ssi. I have 3 school aged children who lived with me. I lost my job and apartment due to my illness. I am now living with my mom but my children split their time between me and their dad. I have always claimed them on my taxes but this year I’m not filing cause I haven’t worked. My ex would like to claim them. Would this hurt my chances with ssi if he claimed them?

    • Kay Derochie

      Dear Joanne,

      Who claims the children as tax dependents will not affect your Social Security Disability (SSDI) or your Supplemental Security Income (SSI) claims.

      Sincerely,
      Kay

  • ashley

    I just. Had a baby about. 5 month. Ago.i get SSI bebfits And i take care of her by myself is their. Any way i can calm. Taxes. On the 2. Of us

    • Kay Derochie

      Dear Ashley,

      I suggest that you ask a tax accountant or the IRS your question. All I can tell you is that Supplemental Security Income (SSI) is not taxable.

      Sincerely,
      Kay

  • Robert Meek

    Can my kids draw some of my Disability Benefits. One lives in Oklahoma and the other lives with me?? Can you please contact me at xxx-xxx-xxxx with information about this. Thank you so much for your time

    • Kay Derochie

      Dear Robert,

      I respond to questions only via this website. (I removed your phone number from your posting to protect your privacy.) You can call Social Security at xxx-xxx-xxxx and ask the amount of your maximum family maximum and your primary insurance amount (before any withholding for Medicare or taxes. If the family maximum is more than your primary insurance amount (your benefit), then your minor children can apply for benefits. You should apply for the child who lives with you and the adult with physical custody of the other child should apply for that child.

      Sincerely,
      Kay

      • Colleen

        Ma’am Roberts phone number is still in his post. I wanted you to be aware of this. 🙂 Robert sir ,if there’s away to edit it, I suggest you do this, Kay is correct privacy in this world is diminishing. My mother was a victim of scammers.

        • Kay Derochie

          Thank you, Colleen. I deleted the phone number.

  • Anna

    I am 62, my husband is disability . Will I get any benefit ? I have a part time job. I have to take care of him too.

    Thanks
    Anna

    • Kay Derochie

      Dear Anna,

      You can choose to apply for reduced retirement benefits on your own earnings records and reduced wife’s benefits on your husband’s. If the wife’s benefit is more than your own retirement, you will be paid your own retirement and a partial wife’s benefit. For example, if your retirement benefit was $900 and a wife’ benefit would be $1,100, you would receive $900 on your own account and $200 on your husband’s account. If your annual earnings are $15,720 or less, your work will not affect your benefits. If you are earning more than that amount, your annual benefits will be reduced one dollar for each two dollars over $15,720.

      Sincerely,
      Kay

      Sincerely,
      Kay

  • i will be 62 later this month i am receiving ss disability will my ssi change at that age i have received emails on over 50 ssi disabilty get a increase it was a obahma care benifts can you let me know thanks Barbara

    • Kay Derochie

      Dear Barbara,

      Your disability benefits will not change to retirement benefits until you reach full retirement age, which for you is age sixty-six. The amount will not change at the time.

      It is possible that Medicaid benefits for those over fifty are being changed; however, it is unlikely that SSI benefits are being increased for only older people. If the email says SSI is going up, I suggest that you be careful with the emails as they could be a scam.

      Sincerely,
      Kay

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