Every year millions of Americans depend on SSDI or SSI income to provide necessities for themselves and sometimes even their families. Many people wonder if this income is taxable because recipients are often disabled and have little money; the answer is it depends on various factors. Let’s take a look.
SSDI income is taxable depending on how much you earn, but plenty of people don’t make over the threshold, so they don’t pay anything. The state you live in also determines how much you owe.
Fortunately, SSI income is not taxable because it is considered a type of insurance. SSDI and SSI offer similar benefits but are also different federal programs.
It’s helpful to remember that income thresholds can fluctuate and change because the Internal Revenue Service (IRS) adjusts based on the cost of living. You could also speak with a tax professional or look at the IRS website to determine how much your SSDI might be taxed.
The Social Security Benefit Statement (Form SSA-1099) can help evaluate tax liability.
In short: Your SSDI benefits are taxable depending on how much you earn in a year and the state you reside in. SSI income is not taxable.
If you or a family member are having issues understanding, applying for, or receiving disability benefits, our SSI lawyers in Stockton, CA, are here to help. Our company, PLC, is well-versed in all the rules and regulations that come with Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
For more information, visit us at Pena & Bromberg, and our SSI lawyers in Stockton, CA, will quickly assist you.