Ask Terry Questions Social Security disability

Social Security disability

By Terry Savage on April 16, 2022 | Taxes & Economy

If I get Social Security disability and no taxes are taken out can I still file income taxes at the end of the year

Terry Says

Do you have other income in addition to your Disability. That might impact your need to file a tax return.
Here are the rules for taxation of SS Disability Benefits:

The IRS states that your Social Security Disability Insurance benefits may become taxable when one-half of your benefits, plus all other income, exceeds an income threshold based on your tax filing status:

Single, head of household, qualifying widow(er), and married filing separately taxpayers: $25,000
Married filing jointly: $32,000
Married filing separately but lived with your spouse during the tax year: $0
For example, if you are married and file jointly, you can report up to $32,000 of income before needing to pay taxes on your Social Security Disability Insurance benefits. If you earn more than these limits for these tax filing statuses, you have two different tax rates the IRS can apply.

As a single filer, you may need to include up to 50% of your benefits in your taxable income if your income falls between $25,000 and $34,000.
Up to 85% gets included on your tax return if your income exceeds $34,000.
For married couples who file jointly, you’d pay taxes:

Up to 50% of the Social Security Disability Insurance benefits you receive when your combined income falls between $32,000 and $44,000
Up to 85% of your disability benefits if your combined income exceeds $44,000

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