income taxes on my social security disability benefits

You may have received an award letter or other document in the mail from Social Security that says you may have to pay income taxes on your disability benefits.  So, how do you know whether you will have to?

The answer depends on what other income you may have coming into your household.  That income could include things such as your spouse’s wages, any interest or dividends you may be earning off of investments, and any other taxable income that must be reported on your tax return.

Whether you have to pay (and how much you have to pay) is based on your “Combined Income.”  Combined income is defined as:

Your Adjusted Gross Income
+ any Non-Taxable Interest
+ ½ of Your Social Security Benefits
Your Combined Income

As of the time of this writing (September 2023), you only have to pay taxes on your benefits if:

You file as an individual AND
(1) your total “combined income” is over $34,000.   If so, 85% of your benefits may be taxable
(2) your total “combined income” is between $25-34,000, if so 50% of your benefits may be taxable

OR

If you file a joint return with your spouse AND
(1) Your total “combined income” is over $44,000.  If so, up to 85% of your benefits may be taxable
(2) Your total “combined income” is between $32-$44,000.  If so, up to 50% of your benefits may be taxable

OR

If you are married and file a separate tax return
Source: https://www.ssa.gov/benefits/retirement/planner/taxes.html

Read more over on our Social Security Disability pages.

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