Are Social Security Disability Benefits Taxable?

While most people who receive Social Security Disability Insurance (SSDI) do not have to pay income taxes, their benefits could be taxed if they or their spouses receive substantial income from other sources. Those who receive Supplemental Security Income (SSI) rarely pay income taxes because if they had enough income to be taxed, they wouldn't be eligible for SSI.

At Dale Buchanan & Associates, our lawyers have extensive experience helping disabled people obtain disability benefits from Social Security. We offer a free initial consultation to answer your questions about taxes, medical care and other issues.

Taxes And SSDI Payments

Whether or not you have to pay taxes on your SSDI benefits would depend on the amount of earnings that you and your spouse receive from other sources. For example:

  • If you earn from $25,000 to $34,000 a year and file as an individual, you would have to pay income taxes on about half the value of your SSDI benefits.
  • If you earn from $34,000 to $44,000 a year and file as an individual, you would have to pay income taxes on about 85 percent of your SSDI benefits.

How Is Social Security Back Pay Taxed?

If you receive back payments in a lump sum, you may owe taxes depending on the amount of other earnings you had. If some of the lump sum is back pay for an earlier year, you may be able to lower your taxes by applying that portion of the payment to an earlier tax year.

We Are Here To Help — Contact Us For A Free Consultation

For a free consultation with a lawyer about income taxes and disability payments, contact Dale Buchanan & Associates.

We have offices in Chattanooga, Knoxville, Nashville, Jackson and Manchester, Tennessee. We also maintain an office in Florence, Alabama, and a satellite office in Rome, Georgia. Our attorneys serve clients throughout the United States.