Do you have to pay taxes on your SSDI benefits?

Home / Do you have to pay taxes on your SSDI benefits?

Most people in New York and the rest of the country have to pay income taxes. For those who have a single source of income from an employer, filing a tax return is pretty straightforward. For others who have may have multiple sources and types of income, it can be a little more challenging to determine exactly what you owe.

As we approach the deadline for filing tax returns, some people may be wondering whether they are required to pay taxes on their Social Security Disability Insurance benefits. The answer to that depends on your entire financial picture.

According to the Social Security Administration, recipients of disability benefits do not have to pay taxes on their benefits if it is their only source of income. If you have another source of income, however, you may have to pay taxes on your SSDI benefits.

If you are married but do not file a joint return with your spouse, you will likely be taxed for your benefits. If you file a joint return with your spouse, and both of you together make more than $32,000, you may also be required to pay taxes on your benefits. If you file your tax return as an individual, you will have to pay taxes on your disability benefits if your income exceeds $25,000.

In total, about one-third of the people who receive disability benefits end up having to pay taxes on them. Hopefully, this information will help you determine whether you will have to pay taxes on your benefits.

Source: Social Security, “What You Need To Know When You Get Social Security Disability Benefits,” April 7, 2014

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