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Are SSD Benefits Taxable?

If you receive Social Security Disability (SSD) benefits, you may be surprised to discover that your benefits may be taxable, depending on your circumstances. Indeed, as many as one-third of all SSD recipients will end up paying taxes on their benefits, according to the Social Security Administration (SSA).

While the State of Ohio does not tax SSD benefits, the federal government does. However, figuring out whether you owe the IRS money can be quite complex. For example, the first step to determining whether you owe taxes is to add up all of your sources of income, plus an amount equal to half of your SSD benefits. If the total of this equation is greater than the following amounts, you will owe taxes:

  • $25,000, if you file your taxes as an individual
  • $32,000, if you are married and filing jointly
  • $25,000, if you are married and filing separately and you lived apart from your spouse for the entire year
  • $0, if you are married and filing separately and you lived with your spouse at any time during the year

If you end up owing taxes on your SSD benefits, it is important to remember that the taxable amount may vary a great deal, depending on how much income you actually have. Essentially, the more you make, the more of your SSD benefits will be taxable ― ranging from 50 percent of your benefits to as much as 85 percent.

Not only is the process outlined above incredibly complicated, but tax laws and regulations are constantly changing ― meaning it is often best to speak with an experienced attorney should you have any concerns regarding your disability claim or benefits.

Help Is Just A Phone Call Away

Whether you have questions about applying for disability benefits or Social Security Disability law in general, the dedicated and experienced lawyers at Philip J. Fulton Law Office are here to assist you.

From our office in Columbus, we help injured and disabled workers throughout Ohio get the benefits they deserve. For your FREE initial consultation, call us today at 614-963-9569. You can also reach us online.