Is SSDI Taxable?

Is Social Security disability benefits (SSDI) Taxable?

Now that tax season has arrived, you might be wondering if you’re required to pay taxes on your Social Security disability benefits (SSDI).

The answer is, it depends on how much income you have. If you have another source of income in addition to your SSDI, your benefits may likely be taxed. If you are single and you make more than $25,000 annually or a married couple filing jointly with a combined income of more than $32,000 annually, a portion of your SSDI will likely be subject to taxes.

In addition, a large lump sum of SSDI backpay can bump your income up enough for the year in which you receive it that you might have to pay more taxes on it than you would otherwise. For that reason, you can apply the SSDI benefits owed from past years to previous tax returns, which will lower your income for the year you receive the larger payment. You can learn more about this here, or consider consulting a CPA.

If you have additional questions about Social Security benefits, or if you’d like to learn more about filing a Social Security disability claim, feel free to contact us anytime at 877.526.3457. We have an experienced team of West Virginia Social Security Disability attorneys, and one of our representatives will be happy to answer your questions. Or if you’d prefer to contact us online, please fill out this form and we will respond to you shortly.