Whether you file taxes on SSDI depends on your total income and filing status
You do not automatically have to file a federal tax return just because you receive Social Security Disability Insurance (SSDI). The IRS treats SSDI the same way it treats regular Social Security retirement benefits: you file only if your total income—including SSDI, wages, interest, and other sources—exceeds a threshold that depends on your age and filing status.
The threshold is lower if you have earned income (wages from work) than if you have only unearned income (SSDI, interest, dividends). For 2024, a single person under 65 with only SSDI income does not file unless their total income exceeds $14,600. But if that same person earned $1 from wages, the threshold drops to $1,150 in combined income. The exact numbers change each year, and they are higher if you are married or over 65.
Even if you are not required to file, you may want to file anyway—especially if you had taxes withheld from your SSDI or if you worked part of the year and earned a refund. Filing is also necessary if you received a Form SSA-1099-SM (the SSDI equivalent of a 1099) showing income that should be reported.
Key Takeaways
- You file taxes on SSDI only if your total income (SSDI plus wages, interest, and other sources) exceeds the IRS threshold for your age and filing status.
- The threshold is much lower if you have any earned income from work than if you have only SSDI, so even small wages can trigger a filing requirement.
- Social Security will send you a Form SSA-1099-SM each January showing your SSDI income; keep it for your records and give it to whoever prepares your taxes.
- You may owe federal income tax on part of your SSDI if your combined income is high enough, but most SSDI recipients pay little or no federal tax.
- Some states do not tax SSDI at all, while others tax it the same way the federal government does; check your state's rules before filing.
How the IRS counts SSDI income
The IRS counts SSDI as income for tax purposes, but the way it is counted is different from wages. If SSDI is your only income, you add it to any other unearned income (interest, dividends, rental income) and compare the total to your filing threshold. If you also worked during the year, you add your wages to your SSDI and any other income.
The complication is that part of your SSDI may be taxable, depending on your total income. If your combined income is below a certain level (called the "combined income" test), none of your SSDI is taxed. If your combined income is higher, up to 50 percent or 85 percent of your SSDI becomes taxable income. This is the same rule that applies to regular Social Security retirement benefits.
To figure out whether any of your SSDI is taxable, the IRS uses a formula that includes your adjusted gross income, your nontaxable interest, and half of your SSDI. The result determines how much of your SSDI is subject to federal income tax. Most people on SSDI pay no federal tax on their benefits because their total income is too low, but if you have other income sources—especially wages from work—you may owe tax.
Filing thresholds for 2024
The IRS updates filing thresholds each year. For 2024, here are the thresholds for when you must file a federal return:
| Filing Status | Age | Only Unearned Income (SSDI only) | Any Earned Income (wages) |
|---|---|---|---|
| Single | Under 65 | $14,600 | $1,150 |
| Single | 65 or older | $18,350 | $2,900 |
| Married filing jointly | Both under 65 | $29,200 | $2,300 |
| Married filing jointly | One 65 or older | $30,750 | $3,650 |
| Married filing jointly | Both 65 or older | $32,300 | $4,700 |
These thresholds are for 2024 tax returns filed in 2025. They increase slightly each year. If your income is below the threshold for your situation, you are not required to file, but you may still want to file if you had taxes withheld or if you worked part of the year.
When you should file even if you are not required to
Even if your income is below the filing threshold, you should file a federal return if you had federal income tax withheld from your SSDI. This can happen if you requested voluntary withholding when you started receiving benefits, or if you worked during the year and your employer withheld taxes. Filing allows you to claim a refund of those withheld taxes.
You should also file if you worked during the year and earned income that was subject to payroll taxes (Social Security and Medicare taxes). Even if you owe no federal income tax, you may be due a refund of overpaid taxes. Additionally, if you have dependents or a spouse with income, filing may allow you to claim the Earned Income Tax Credit (EITC) or other credits that reduce your tax or increase your refund.
Finally, if you received a Form SSA-1099-SM from Social Security, you should keep it with your tax records. You do not have to attach it to your return, but you need it to verify your SSDI income if the IRS ever questions your return.
How SSDI affects your tax liability
If your combined income is high enough that part of your SSDI becomes taxable, you will owe federal income tax on that portion. The amount of SSDI that is taxable depends on your total income and filing status. For most SSDI recipients, the amount is zero because their income is too low. But if you have wages, investment income, or other sources of income, some of your SSDI may be taxable.
The IRS uses a two-tier system. If your combined income is between the first and second threshold, up to 50 percent of your SSDI is taxable. If your combined income exceeds the second threshold, up to 85 percent of your SSDI is taxable. The thresholds vary by filing status and do not change each year the way the standard deduction does.
For a single filer, the first threshold is $25,000 and the second is $34,000. For married filing jointly, the first threshold is $32,000 and the second is $44,000. If your combined income is below the first threshold, none of your SSDI is taxable. If you are above the second threshold, you use a more complex formula to determine the taxable amount, but it never exceeds 85 percent of your SSDI.
State income tax on SSDI
Thirteen states do not tax SSDI at all: Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, and Pennsylvania. If you live in one of these states, you do not owe state income tax on your SSDI, even if you owe federal tax.
The remaining states follow the federal rule: they tax SSDI the same way the IRS does, or they exempt it entirely. A few states have their own thresholds and rules. For example, Colorado and Kansas tax SSDI but only for people over a certain age or with income above a certain level. Check your state's Department of Revenue website or ask a tax preparer about your state's specific rules.
If you live in a state that taxes SSDI, you will file a state return using the same income figures you used for your federal return. Your state return will ask for your SSDI income on a separate line, and the state will explore its own tax rate and rules to determine what you owe.
What to do with your Form SSA-1099-SM
Each January, Social Security sends you a Form SSA-1099-SM showing the total SSDI you received in the previous year. This form is similar to a W-2 or 1099 that an employer sends. You do not attach it to your federal return, but you keep it for your records and give it to whoever prepares your taxes (or use it yourself if you file online).
The form shows your SSDI income in Box 5. If you had federal income tax withheld from your SSDI, that amount appears in Box 6. If you had state income tax withheld, it appears in Box 7. Use these figures when you fill out your tax return or give the form to a tax preparer.
If you did not receive a Form SSA-1099-SM by the end of January, contact Social Security at 1-800-772-1213 or visit your local Social Security office. You need this form to file your taxes accurately, and Social Security can send you a replacement copy.
Working while on SSDI and tax filing
If you work while receiving SSDI, your filing requirement changes. Your wages are earned income, and the threshold for filing when you have earned income is much lower than when you have only SSDI. For 2024, a single person under 65 with any earned income must file if their total income exceeds $1,150—even if they also receive SSDI.
This means that if you earn even a small amount from work, you almost certainly have to file a federal return. Your employer will likely withhold federal income tax from your wages, and you will need to file to report that income and claim any refund you are due. Additionally, your wages may affect your SSDI payment through the Substantial Gainful Activity (SGA) test, which is a separate rule from tax filing.
Keep all pay stubs and tax documents from your employer. When you file, you will report your wages on Schedule C (if you are self-employed) or on the main return (if you are an employee). Your tax preparer or tax software will help you combine your wage income with your SSDI to determine your total income and tax liability.
Frequently Asked Questions
Do I have to file taxes if I only receive SSDI and no other income?
Only if your SSDI income exceeds the IRS threshold for your age and filing status. For 2024, a single person under 65 with only SSDI must file if they received more than $14,600. Most SSDI recipients do not reach this threshold, so they do not have to file. Check the table in this article to find your threshold.
What if I earned wages and also received SSDI?
You must file if your combined income (wages plus SSDI) exceeds the threshold for earned income, which is much lower than the threshold for unearned income only. For 2024, a single person under 65 must file if they had any earned income and their total income exceeded $1,150. File to report your wages and claim any refund you are due.
Will I owe federal income tax on my SSDI?
Only if your combined income is high enough that part of your SSDI becomes taxable. Most SSDI recipients have income below the threshold and pay no federal tax on their benefits. If you have wages or other income, use the two-tier formula described in this article to determine whether any of your SSDI is taxable.
What should I do with my Form SSA-1099-SM?
Keep it with your tax records. You do not attach it to your federal return, but you use the income figure on it when you file. If you use a tax preparer, give them the form. If you file online, enter the income amount from Box 5 when prompted for SSDI income.
Does my state tax SSDI?
Thirteen states do not tax SSDI: Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, and Pennsylvania. Other states tax it the same way the federal government does, or have their own rules. Check your state's Department of Revenue website or ask a tax preparer about your state.