Friday, July 10, 2020

IS THERE TAX ON SOCIAL SECURITY DISABILITY BENEFITS?

Do you have to pay tax on your Social Security disability income?

Yes, Social Security income is taxable.  Most people, however, do not end up paying any tax.  About one-third of people on disability will pay some tax.

This is because when other income, such as a spouse's income, is added--tax may be due.

The rule of thumb is this:  If you file as a single taxpayer and your total annual income is less than $25,000 (from all sources, including Social Security) no tax is due.  If your income from all sources totals more than $25,000, you will have some tax due.

If you are married and filing a joint return, total combined income may be taxable if it is $32,000 or more, including Social Security benefits.


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