Are Social Security Disability Benefits Taxable Income?

History

• When you work for an employer, you and your employer pay a percentage of your wages to the Social Security Administration. The money is used by the Social Security Administration to pay those who have already retired, become disabled or other qualified people. You receive a credit to your account. When you receive enough credits, you can retire and draw a modest retirement from the Social Security Administration. This will also help you if you become disabled or have a family member become disabled.
  
  

Benefits

• If you qualify for Social Security disability coverage, you may qualify for other programs such as Supplemental Security Income, Medicare and public assistance. You may also qualify for VA Disability if your disability was due to your service in the armed forces. Your children and spouse may also qualify for benefits as well. Disabled children under the age of 18 may qualify for assistance depending upon the family's income and resources.
  
  

Single Filers

• The Internal Revenue Service Publication 90 states, "You will have to pay taxes on your benefits if you file a federal tax return as an "individual" and your total income is more than $25,000." If your total income is more than $25,000 and you file as an individual, meaning Single or Head of Household, you will have to report half of your Social Security disability income as income for tax purposes.
  
  

Married Filers

• If you file a joint return, you will have to pay taxes if you and your spouse have a total income that is more than $32,000. You will have to report half of your Social Security disability as income to be calculated for possible taxing. If you and your spouse file separately, all of your Social Security disability benefits will be taxable.
  
  

Family Member Benefits

• If your children receive Social Security disability payments, their payments will not count toward your and your spouse's income. The child may have to pay taxes on the Social Security disability income on his own 1040 personal income taxes if he receives more than $10,000 total taxable income.