People often wonder whether the Social Security Disability Insurance benefits (“SSDI” or “disability benefits”) they are receiving are taxable.
Taxes and Social Security Disability Benefits.
The short answer is “yes.”
The longer answer goes something like this.
When it comes to taxes, keep this in mind: the Social Security Administration (“SSA”) has two separate disability programs— SSDI (which we are discussing here) and Supplemental Security Income (“SSI”).
Supplemental Security Income is a needs-based program. In other words, it is not based on being disabled, but on having a low income. Because SSI recipients are low-income, benefits received under this program are not taxed.
The SSDI program, on the other hand, is not an income-based program. This program does not look at your income but at whether or not you are permanently disabled. As a result, money received under the SSDI program is taxable.
How much of your SSDI benefits are taxable depends on how high your income is. Because many SSDI recipients don’t have much other income, they generally do not end up paying taxes on their benefits. Of course, those who may have other household income or income from a spouse will pay taxes.
When It Comes to SSDI, There’s Plenty To Know. We Can Help.
If you have questions about disability benefits or have been denied benefits, contact us. We are experienced social security disability attorneys with offices throughout Missouri, Kansas and Illinois. We also have offices in Oklahoma. We offer FREE consultations and we do not get paid unless you win your case. Call us at 855-727-8625 or email us here and schedule your free consultation today.