Are Social Security Disability Benefits Taxable?The simple answer to this is that The two potential types of Social Security Disability benefits that are taxable are: A) Monthly disability benefit payments and B) Lump-sum back payments of disability benefits. How much of your disability benefits will be taxable depends on the total amount of your Social Security Disability benefits and any other income. Currently, your Social Security Disability benefits may be taxable if your total income exceeds $25000.00 as an individual, or $32000.00 for a couple. Lump sum payments of retroactive disability benefits can be a little more tricky since they often involve payment for years prior to the year you receive your SSA 1099. Conventional wisdom seems to indicate that it is easier to just claim all the lump sum back payment in the year that you receive the payment rather than filing amended returns for any previous years. The IRS publication 915 deals with Social Security benefit taxation and provides useful worksheets to help you figure out if your Social Security Disability benefits are taxable. There are also some potential deductions and credits for disability claimants who received a lump sum retroactive back payment of benefits. You may be able to deduct expenses that you paid to get your retroactive disability benefits. If you had a representative or attorney, you may be able to deduct their fee from the taxable part of your SSDI benefits. If you had to repay your employer's or your long-term disability insurance company out of your back payment, you may be able to deduct the amount you had to repay. These deductions can be complicated to figure out so it is advisable to obtain the services of a tax professional to help you calculate your deductions. About the Author: Tim Moore is a former Social Security Disability Examiner in North Carolina, has been interviewed by the NY Times and the LA Times on the disability system, and is an Accredited Disability Representative (ADR) in North Carolina. For assistance on a disability application or Appeal in NC, click here. Most popular topics on SSDRC.com Social Security Disability in North Carolina Common Mistakes to avoid after being denied for Disability Tips to Prepare for Filing for Social Security Disability or SSI Advice to Win SSD and SSI Benefit Claims Social Security Disability SSI Questions What is the difference between Social Security Disability and SSI? How to get disability for depression Getting disability for fibromyalgia SSI disability for children with ADHD What is the Application Process for Social Security Disability and SSI? Social Security Disability SSI Exam tips More Social Security Disability SSI Questions What makes you eligible for Social Security Disability or SSI? Related pages: Applying for NC disability benefits Are Social Security Disability Benefits Taxable? How long do you have To Be Out Of Work Before You Get Social Security Disability (SSD)? How Old Do You Have To Be For Social Security Disability - Is There An Age Requirement? Can You Get SSD or SSI Disability Benefits If you are Injured In An Accident? Social Security Disability, SSI and Being Over the Age of Fifty Will Work Cause You To Lose Your Disability Benefits? How Long Can You Receive Social Security Disability Benefits? Does Social Security Disability Come With Medicaid Benefits? If you get Social Security Disability benefits do you get Medicare or Medicaid? If You Get Social Security Disability or SSI Benefits, Will Your Dependents Get A Check? If I Move To A State Where There Is A Lower Cost Of Living, Would My SSD Benefits Decrease? What is the specific amount you can earn on Social Security Disability? If you apply for disability in Texas Disability requirements in Texas Qualifying For Disability in Texas |
