Paying Taxes on Disability Benefits
While receiving social security benefits for your disability can be a godsend, it may come with a cost, i.e., being faced with a federal tax bill. People who receive Supplemental Security Income (SSI) as their sole source of income are the only disabled individuals sure to avoid federal taxes. If you are confused about whether or not you will have a tax bill, please contact an experienced lawyer at Disability Action Advocates for assistance.
Calculating Taxes on Social Security Disability Benefits
If you receive SSI benefits and no other income, your payments are non-taxable. If you have been
working while disabled and made money in addition to your SSI, however, you must report the amount earned. If you receive
Social Security Disability benefits and have made additional money or your spouse has earned a substantial income, you also must report to the IRS. Two factors are used to determine the need to pay taxes:
- Total amount of earned income (SSI/SSD and additional income)
- Filing status (single, married filing jointly, married filing separately)
Highly Qualified Legal Help
We have onsite an attorney who is extraordinarily well-versed in matters involving the intersection of Social Security Disability laws and tax laws. He is a member of numerous legal organizations including: the Washoe County and American Bar Associations, the State Bar of Nevada, the Nevada Association of Defense Counsel and the National Organization of Social Security Claimants' Representatives (NOSSCR) as well as the National Association of Disability Representatives (NADR).
He is also an admitted Washoe County arbitrator and handles all of the hearings in front of the Administrative Law Judge. If you are in doubt about whether you are required to pay taxes on your benefits, we recommend that you consult with our legal team and rest easier knowing that your situation is in competent hands.
With 17 years of experience in social security law, we understand how confusing the rules can be. We are ready to review your situation during a free consultation, answer any questions you may have and determine how we may be able to help you resolve your tax issue.