My social security disability benefits taxable?


Social security disability benefits can be taxable if you receive other income that is above a certain threshold. Most recipients of social security disability, however, does not have to pay taxes on that income. The reason most people on disability, have virtually no other income.

How Social Security Disability Works

President Franklin Roosevelt created a program of social protection in the framework of its new course of government reform of the 1930-ies. The aim of the course is to help lift the country out of the great depression and the creation of the social protection system for elderly citizens and the disabled, who are unable to live a normal life.

Most recipients of social security belong to the first category. They have reached at least minimum retirement age of 62 and filed to receive a monthly social security check based on the amount they paid into the program during their working years.

Social recipients security disability does not have to be a certain age to get benefits. Instead, their disability must meet certain criteria established by the social security Administration (SSA). The condition must prevent a person to do the work he has done in the past, and this should be determined, depending on age, education, experience and other factors that the person would have difficulty training for a new career.

In addition, the recipient must currently doesn’t work or works so little that his monthly income is less than $1,090. A particular type of disability should be included in the list approved by the SSA, or otherwise, shall be equal to the seriousness of the condition in the list.

When Disability Benefits Are Taxed

Whether disability benefits are taxable depends on your total income. In order to avoid taxation, your gross income is determined by adding half your disability benefits to all other income, including tax-exempt, must fall below the threshold set PAS. If You are single, the threshold amount is $25,000. If you are married and file jointly, it is $32,000.

State taxes on disability benefits

Most States do not tax social security benefits, including for persons with disabilities. In 2018, however, a total of 13 States still tax benefits to some extent. These States are Minnesota, Montana, Missouri, Nebraska, Colorado, Connecticut, Kansas, Utah, Vermont, West Virginia, new Mexico, North Dakota and Rhode island. Most of these States use the same income criteria used by the SSA to determine how much, if any, your disability benefits are taxable.

(For associated reading, see: what is the maximum social security disability benefits?)

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