With April already here, Tax Day is just around the corner. Uncle Sam is ready and waiting to learn about your income from 2015 and collect from or return tax dollars to New Yorkers. Although Tax Day for Americans traditionally is April 15, the official date this year is Monday, April 18. As New Yorkers likely know, this is the last day to inform the United States Internal Revenue Service of their income from the previous fiscal year. Filing may be done via mail or electronically.
While many have already filed, many of the procrastinators among us have not. So, this information may still be of value to some of our blog readers. Did you know that some benefits received from Social Security are taxable, including some disability benefits? This is dependent on the amount of taxable income one receives and is generally applicable to those who receive additional sizable income or incomes from other sources in the previous year.
It is important to note that this is not applicable to anyone who receives Supplemental Security Income, or SSI, from the Social Security Administration as those benefits are not taxable. However, it may apply to benefits received as Social Security Disability Insurance, or SSDI, benefits.
To determine whether one needs to pay taxes on Social Security Disability Benefits, New Yorkers must look at their Social Security Benefit Statement (Form SSA-1099/1042S). This form is typically sent via mail in January. The form is also available online through the Social Security website, under the "Replacement Documents."
These forms and rules can be complicated. But, with a little help from an expert, navigating the Social Security maze can be a little more manageable.
Source: Social Security Matters, "Tax Season - It's About What You Know," Jim Borland, March 17, 2016