Social Security Disability Insurance (SSDI) provides crucial financial support to individuals with disabilities, but did you know that your benefits might be taxable? Whether you owe taxes depends on your total income for the year.
Let’s break down how SSDI taxation works, what income thresholds apply, and how much of your benefits may be taxable.
Tax Forms
Each year, the Social Security Administration (SSA) issues Form SSA-1099, also known as the Social Security Benefit Statement. This form provides a record of your SSDI benefits and helps determine if you need to pay taxes on them.
It’s important to note that Supplemental Security Income (SSI) is not taxable, but SSDI may be, depending on your income level.
Income Thresholds
Your SSDI benefits become taxable if your total income—including half of your SSDI benefits and other income sources (such as wages, investment earnings, or tax-exempt interest)—exceeds the IRS’s base amount for your filing status.
Here’s what that looks like:
| Filing Status | Taxable Income Threshold |
|---|---|
| Single, Head of Household, Qualifying Surviving Spouse | Over $25,000 |
| Married Filing Jointly | Over $32,000 |
| Married Filing Separately (lived apart from spouse all year) | Over $25,000 |
| Married Filing Separately (lived with spouse at any time in the year) | $0 (All SSDI benefits may be taxable) |
If you file jointly, your combined income (yours and your spouse’s) is used to determine taxability.
Taxable
The percentage of your SSDI benefits that may be taxed depends on your total income:
| Filing Status | Income Range | Taxable Percentage |
|---|---|---|
| Single, Head of Household, Qualifying Surviving Spouse | $25,000 – $34,000 | Up to 50% |
| Single, Head of Household, Qualifying Surviving Spouse | Over $34,000 | Up to 85% |
| Married Filing Jointly | $32,000 – $44,000 | Up to 50% |
| Married Filing Jointly | Over $44,000 | Up to 85% |
If your total income is below the threshold, your SSDI benefits are not taxable.
Additional Income
SSDI benefits are designed for individuals with disabilities and typically require limited income for eligibility. However, if you receive additional income from sources such as:
- Investment dividends
- Tax-exempt interest
- Spousal earnings
…you may end up owing taxes on your SSDI benefits.
Knowing these thresholds can help you plan ahead and avoid surprises when tax season arrives.
Deadlines
For the 2024 tax year, the deadline to file taxes is:
| Tax Deadline | Who It Applies To |
|---|---|
| April 15, 2025 | General taxpayers in the U.S. |
| June 16, 2025 | Americans living abroad |
If you receive SSDI and suspect you may owe taxes, consider speaking with a tax professional to ensure you remain compliant with IRS rules.
FAQs
Do I have to pay taxes on SSDI?
It depends on your total income. If it exceeds the IRS thresholds, SSDI may be taxable.
Is SSI taxable like SSDI?
No, Supplemental Security Income (SSI) is not taxable.
What is the tax threshold for SSDI?
For single filers, it’s $25,000. For married joint filers, it’s $32,000.
How much of SSDI is taxable?
Up to 50% is taxable if income is moderate; up to 85% if income is high.
When is the tax deadline for 2024?
April 15, 2025, for U.S. residents, and June 16, 2025, for Americans abroad.
