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One of the questions we hear most often is, “Will I need to pay taxes on my Social Security Disability Insurance or Social Security Supplemental Income benefits?” The good news is that, if Social Security benefits are your only source of income, it is very likely that you will not have to pay taxes on your benefits.
If you do have other income, such as wages, interest earned, dividend payments, etc. (in other words, any taxable income that you are required to report on your tax return) then you MAY have to pay federal income taxes on your Social Security benefits. However, even if your benefits are taxable, you won’t have to pay federal income taxes on more than 85% of your Social Security benefits.
So, what about state income taxes? There’s more good news: over half of the states do not currently tax Social Security income, and more states are expected to follow this rule in the future. Even if you live in a state that reserves the right to tax Social Security benefits, it’s still possible that you won’t have to pay taxes on your benefits.
If you do anticipate that your benefits will be taxed, you can request that the government withhold taxes from your benefits each month. You’ll need to fill out and submit a Voluntary Withholding Request form, which can be found online or by calling Social Security.
If you would like experienced, professional legal representation to guide you through this or any other issue related to Social Security Disability Insurance or Social Security Supplemental Income benefits, click here to schedule a free consultation.
To Schedule an Appointment, Call Us Toll Free at 1.877.873.8208 or Email Us for a Prompt Response.
Jan Dils, Attorneys at Law