Overview of Disability
Disability Back Pay
Requirements for Disability
Applications for disability
Tips and Advice for Disability Claims
How long does Disability take?
Winning Disability Benefits
Common Mistakes after a Denial
Mental Disability Benefits
Denials for Disability
Appeals for denied claims
Disability Benefits from SSA
Child Disability Benefits
Qualifications and How to Qualify
Working and Disability
Disability Awards and Notices
Disability Lawyers, Hiring Attorneys
Social Security List of Conditions
What Social Security considers disabling
Medical Evidence and Disability
Filing for Disability Benefits
Eligibility for Disability Benefits
SSD SSI Definitions
SSDRC authored by Tim Moore
Ask a question, get an answer
Are Social Security Disability Benefits Taxable?
The simple answer to this is that Social Security disability benefits are taxable. However, you "may or may not" have to pay tax on your disability benefits. Social Security issues a miscellaneous SSA 1099 for disability benefits paid each year.
The two potential types of Social Security disability benefits that are taxable are: A) Monthly disability benefit payments and B) Lump-sum back payments of disability benefits. How much of your disability benefits will be taxable depends on the total amount of your Social Security disability benefits and any other income.
Currently, your Social Security disability benefits may be taxable if your total income exceeds $25000.00 as an individual, or $32000.00 for a couple.
Lump sum payments of retroactive disability benefits can be a little more tricky since they often involve payment for years prior to the year you receive your SSA 1099. Conventional wisdom seems to indicate that it is easier to just claim all the lump sum back payment in the year that you receive the payment rather than filing amended returns for any previous years.
The IRS publication 915 deals with Social Security benefit taxation and provides useful worksheets to help you figure out if your Social Security disability benefits are taxable.
There are also some potential deductions and credits for disability claimants who received a lump sum retroactive back payment of benefits. You may be able to deduct expenses that you paid to get your retroactive disability benefits. If you had a representative or attorney, you may be able to deduct their fee from the taxable part of your SSDI benefits.
If you had to repay your employer’s or your long-term disability insurance company out of your back payment, you may be able to deduct the amount you had to repay. These deductions can be complicated to figure out so it is advisable to obtain the services of a tax professional to help you calculate your deductions.
Return to: Social Security Disability Resource Center, or read answers to Questions
Are Social Security Disability Benefits Taxable?
How long do you have To Be Out Of Work Before You Get Social Security Disability (SSD)?
How Old Do You Have To Be For Social Security Disability - Is There An Age Requirement?
Can You Get SSD or SSI Disability Benefits If you are Injured In An Accident?
Social Security Disability, SSI and Being Over the Age of Fifty
Will Work Cause You To Lose Your Disability Benefits?
How Long Can You Receive Social Security Disability Benefits?
Does Social Security Disability Come With Medicaid Benefits?
If you get Social Security disability benefits do you get Medicare or Medicaid?
If You Get Social Security Disability or SSI Benefits, Will Your Dependents Get A Check?
If I Move To A State Where There Is A Lower Cost Of Living, Would My SSD Benefits Decrease?
What is the specific amount you can earn on Social Security Disability?
Information on the following topics can be found here: Social Security Disability Questions and in these subsections:
Frequently asked questions about getting Denied for Disability Benefits | FAQ on Disability Claim Representation | Info about Social Security Disability Approvals and Being Approved | FAQ on Social Security Disability SSI decisions | The SSD SSI Decision Process and what gets taken into consideration | Disability hearings before Judges | Medical exams for disability claims | Applying for Disability in various states | Selecting and hiring Disability Lawyers | Applying for Disability in North Carolina | Recent articles and answers to questions about SSD and SSI
These pages answer some of the most basic questions for individuals who are considering filing a claim.
Filing for disability - How to file for SSD or SSI and the Information that is needed by Social Security
How to Apply for Disability - What medical conditions can you apply and qualify for?
Applying for Disability - How long does it take to get Social Security Disability or SSI benefits?
What happens if I file a disability application and it is denied by a disability examiner or Judge?
How to Prove you are disabled and qualify to win disability benefits
How do you prove your disability case if you have a mental condition or impairment?
Social Security Disability Back pay and How Long it Takes to Qualify for it and receive it
Social Security Disability SSI - Eligibility Requirements and Qualifications Criteria