One of the more common questions asked of Social Security Disability representatives is “Are my SSDI payments taxable?” The answer, quite simply, is that it depends on your total income. For most people, if Social Security Disability benefits payments represents your only income, you will not be subject to federal income taxes.
If, however, you have other income, either from your spouse or from passive income such as rent and investment income, you may be subject to taxation of part of your Social Security Disability benefits. The factors considered are whether you are married and what your total (combined, if married) income is.
If you’re single and your only income comes from your Social Security Disability benefits, you won’t need to worry about federal income tax. If you have other sources of income, your
Social Security Disability Insurance (SSDI) benefits will be taxable if your total income (including your SSDI payments) is greater than $25,000 per year. Fortunately, though, you won’t have all of your benefits amount taxed. It breaks down like this, for single people:
- Individuals making more than $25,000 but less than $34,000 are subject to taxation on half of their Social Security Disability benefits.
- Individuals making more than $34,000 are subject to taxation on 85% of the Social Security Disability benefits.