Do I Pay Taxes on SSD Benefits?

Social Security Disability (SSD) Insurance benefits apply to those employees who paid into Social Security through their jobs but have suffered disabilities that leave them unable to work and with limited resources to support themselves. These benefits are funded by the taxes paid by employees, which makes the matter of being taxed on them confusing. The bottom line is that your benefits are unlikely to be taxed, but this doesn’t mean they can’t be – depending on the circumstances involved. Discuss your questions and concerns regarding Social Security Disability benefits with an experienced Philadelphia disability benefits attorney today.

Eligibility for SSD Benefits

In order to be eligible for SSD benefits, the following requirements must apply:

• You must meet the work test, which means that you must have earned at least the prescribed minimum amount of income in the form of wages or self-employment income for a specific number of calendar years that must – in turn – add up to a minimum number of credits.
• You’ve been unable to work for at least a year due to your disability, you are expected to be unable to work for at least a year due to your disability, or you’re expected to die as a result of your disability.
• You have not yet reached your full retirement age as defined by the Social Security Administration.

In other words, if you’re receiving SSD benefits, you have a limited income – due to the fact that you’re unable to work – which means you may not owe taxes on your benefits.

When SSD Benefits Are Taxed

If you receive additional income from some source other than a job, it – combined with the amount you receive in SSD benefits – could put your income beyond the threshold set for taxation by the IRS, and you could owe taxes as a result.

The dividing line is set at the following amounts when half of your SSD benefits plus all additional income exceeds the threshold set for your tax filing status. Consider the following:

• If your tax filing status is single, head of household, or married filing separately and you didn’t live with your spouse, the threshold is $25,000.
• If your tax filing status is married filing jointly, the threshold is $32,000.
• If your tax filing status is married, filing separately, but you lived with your spouse at any point during the year, the threshold is $0.

Whenever taxes are involved, the matter is complicated, but a resourceful disability benefits attorney can help.

Seek the Legal Guidance of an Experienced Philadelphia Disability Benefits Attorney Today

If you have concerns that relate to Social Security Disability benefits, the compassionate Philadelphia disability benefits attorneys at HGSK Injury Lawyers have the experience, legal know-how, and commitment to help. Obtaining the benefits to which you’re entitled is important to your future, and we encourage you to reach out for the skilled legal guidance you need by contacting us online or calling 267-350-6600 to schedule a free consultation and learn more about what we can do for you today.