Will Your Social Security Disability Benefits Be Taxable?

With tax season fresh on everyone’s mind, you may be wondering if the Social Security Disability benefits you’re applying for will be taxed.

The short answer? No, if you’re applying for the Supplemental Security Income (SSI) program. And for Social Security Disability Insurance (SSDI), it varies based on your income level.

Many who receive SSDI benefits must pay federal income taxes for them, but this will not exceed 85% of the total amount. This applies to anyone who files a federal tax return with a combined income of over $25,000 for individual and $32,000 for a joint return. The actual percentage varies based on which monthly income bracket you fall under.

It’s important to remember that SSDI and other Social Security benefits are taxed at the marginal income tax rate, so it will probably equate to much less (around 10-15% of your benefits) when all is said and done. Certain states also tax a portion of Social Security benefits.

If you believe you qualify for SSI or SSDI and have questions about taxes or anything else about the application process, you can schedule a free initial consultation with an experienced member of our staff today. We can be reached toll-free at 1.877.526.3457 or via our online contact form.