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Disability Lawyer > Blog > Social Security Disability > Do I Need to File Taxes If I Receive SSDI Benefits?

Do I Need to File Taxes If I Receive SSDI Benefits?


Were you receiving Social Security Disability Insurance (SSDI) benefits for all or part of the last tax year? Or are you thinking ahead to the next tax year and your plan to apply for SSDI benefits in the near future? Many SSDI recipients want to know if their benefits are taxes, and whether they have to file federal income taxes (or state income taxes) if they receive SSDI benefits. Will you need to file taxes — and pay taxes on your SSDI benefits — if you are currently a recipient of SSDI benefits? The answer will depend upon your particular circumstances. You should always discuss the particulars of your case with a lawyer, but we can provide you with more general information in the meantime.

Understanding SSDI Benefits and Taxes 

Whether or not you will need to file a tax return as an SSDI recipient largely depends upon whether you had other sources of income while receiving SSDI benefits, according to a CNET article. As that article explains, “about a third of SSDI beneficiaries are required to pay federal income taxes on their benefits,” and that third usually includes SSDI recipients who “earn a sizable wage aside from [their] benefits.”

To determine whether you need to file a tax return, you will need to figure out whether your income (including SSDI benefits and any other income) exceeded the base amount for the year. How does this work? We can explain.

Determining If You Need to Pay Taxes While Receiving SSDI Benefits 

As the CNET article explains, the first thing you should do is divide the amount of SSDI payments you received during the tax year in half. If you received a total of $24,000 over the year, or $2,000 per month, you would divide that in half and get the number $12,000. Then, you would add any other money you received to that amount, including any dividends from investments or any earned income from a limited job. You would add that total amount to the $12,000 and look at the base amount to see whether your total is above the base amount. If it is, you are required to file taxes.

For 2023, the base amounts are as follows:

  • Single or head of household: $25,000;
  • Married filing jointly: $32,000;
  • Married filing separately (living with your spouse): $0; and
  • Married filing separately (living apart): $25,000.

Contact a National SSDI Lawyer Today 

Whether you are currently receiving SSDI benefits or you are planning to apply for SSDI benefits soon, we know that disabled adults have a wide range of questions about these benefits and how they can impact other areas of their lives. Understanding the relationship between SSDI benefits and other financial matters can be complex, so it is important to have an experienced national SSDI benefits attorney at the Law Offices of Stephen Barszcz who is on your side and can answer any questions you have. If you need help applying for or managing your SSDI benefits, contact us today to find out more about the services we provide to disabled adults across the country.



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