Whether you have applied for your Social Security Disability Benefits or just beginning the application process, one of the questions you might be asking is: is social security disability taxable?

 

This is a common query and members would naturally want to know if they will have to pay taxes once they are awarded Social Security disability benefits.

 

For most people, Social Security Disability or SSD benefits are not taxable. This is true both for those who have income in addition to their SSD benefits and those who do not. If you or someone in your household like your spouse have another source of substantial income, that’s when you are likely to be taxed for your SSDI benefits by the federal government.

 

How are Social Security Disability Benefits Taxed?

If your income is above $25,000 per year when you file your individual taxes, you would have to pay taxes on about half of your disability benefits. If you are married and file for joint taxes, it is likely that you would have to have a combined income of up to $32,000 before you are required to pay taxes on half of your benefits.

 

For those who are single and have an income of more than $34,000, you could be taxed on 85% of your benefits. The same is true for married people who have an income of more than $44,000.

tax computation


Higher income people may pay taxes of about 33% to 55% on 85% of their disability benefits.

 

Other Information Associated with the Question: Is Social Security Disability Taxable?

You can find more information about your social security disability benefits on the official booklet provided by the Social Security Administration at https://www.ssa.gov/pubs/EN-05-10153.pdf. This is a PDF file that you can read on your browser online from your computer or your mobile device.

 

You can also review answers to frequently asked questions at https://www.irs.gov/faqs/social-security-income/regular-disability-benefits/regular-disability-benefits including: is social security disability taxable?

 

State Taxes

A few states may tax social security disability benefits in the same way as the federal government. Other states have their own way of applying state taxes to your SSD benefits. Don’t worry because most states exempt disability benefits from taxation. You can find a list of the states that exempt social security benefits from taxes at https://www.disabilitysecrets.com/resources/social-security-disability/does-my-state-tax-social-secur.

The states found on that list exempt 100% of Social Security benefits from the tax liability of a resident.

 

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