Are Social Security Disability Benefits Taxable?

By November 21, 2016Benefits

disability benefits taxable

Social Security disability benefits help millions of disabled people support themselves on a daily basis. These benefits replace lost income, and help pay expenses from month-to-month. As the end of the year approaches, many people wonder, “are Social Security disability benefits taxable?” Our clients at Summit Disability Law Group often ask us this question. The answer is: it depends. We know that it is important to know the tax status of your benefits, so this article breaks down the issue.

When are Social Security Disability Benefits Taxable?

The amount you must pay in taxes depends largely on the amount of money you make. This is still true when you get disability benefits. In this section, we identify the situations when you need to pay taxes on your benefits. Your monthly benefit amount should be included in your income.

Disability benefits are not taxable if:

  • You are an individual filer and make less than $25,000 in the tax year. If you are single and do not make money outside of your disability benefits, you will probably not need to pay taxes on your benefits.
  • You are a married, joint filer, and you and your spouse together make less than $32,000.

Disability benefits are taxable if:

  • You are an individual filer and make more than $25,000.
  • You are a married, joint filer, and you and your spouse together make more than $32,000.
  • You are married and file taxes separately from your spouse.

These are just the basic rules about taxes and disability benefits. There may be unique factors that affect your tax status. Your benefits may be more heavily taxed if your income is greater than the amounts above. We can help answer any more questions you may have.

Your Disability Lawyers

Summit Disability Law Group helps disabled Utahns win their claims. We know how important these benefits are to our clients, and strive to provide useful resources for disabled people. We offer copies of The Utah Social Security Disability Handbook for free. Order yours today!

Contact us today for help with your claim. We know disability law and love helping people get what they need. We can meet with you to discuss your case in our office, at your home, or wherever is most comfortable for you. Winning our clients’ cases is our goal, and we hope we can achieve it together.

 

Photo “Tax Return and Calculator” copyright by 401 (K) 2012.