Whether you must file taxes on SSDI depends on your other income
You do not automatically have to file taxes just because you receive SSDI. The IRS treats SSDI benefits differently from wages or interest income. Whether you file depends on how much money you earned from work, how much you received from other sources, and your filing status.
The key number is your combined income. This includes wages, self-employment income, interest, dividends, and a portion of your SSDI benefits. If your combined income exceeds a certain threshold, you must file. If it stays below that threshold, filing is optional — though you may want to file anyway to claim refundable tax credits.
The threshold changes based on your age, filing status, and whether you are married. A single person under 65 with only SSDI income has a different threshold than a married couple filing jointly. The IRS publishes these numbers each year, and they shift slightly with inflation.
Key Takeaways
- You must file taxes if your combined income (wages plus a portion of SSDI) exceeds the threshold for your age and filing status.
- If you have no wages and only SSDI income, you typically do not have to file unless you owe self-employment tax.
- Even if you are not required to file, you should file if you had taxes withheld from your pay or if you may have access to for refundable credits like the Earned Income Tax Credit.
- The income threshold that triggers a filing requirement changes each year and varies by age and marital status.
- SSDI benefits are generally not taxable, but up to 85 percent of your benefits can be taxable if your combined income is high enough.
How SSDI income counts toward the filing threshold
The IRS does not count all of your SSDI as income in the same way it counts wages. Instead, it uses a formula called combined income, which is your adjusted gross income plus nontaxable interest plus half of your SSDI benefits.
This matters because you can have substantial SSDI income and still fall below the filing threshold. For example, a single person under 65 in 2024 with no wages and only SSDI income does not have to file unless they also have other income sources. But if you earned $15,000 in wages and received $20,000 in SSDI, your combined income would be higher, and you might cross the threshold.
The exact threshold depends on your filing status and age. Single filers under 65 have one threshold; single filers 65 and older have a higher one. Married couples filing jointly have different thresholds than married couples filing separately. The IRS updates these numbers each January on their website and in Publication 17.
When you must file even with only SSDI income
There are situations where you must file taxes even if your only income is SSDI and it falls below the normal threshold. The most common is self-employment income. If you earned any money from self-employment — whether from a side business, freelance work, or gig work — you must file if your net self-employment income is $400 or more, regardless of your SSDI amount.
You must also file if you had federal income tax withheld from your pay during the year. This happens when you work while receiving SSDI. Even if your total income falls below the filing threshold, filing allows you to claim a refund of the taxes that were taken out.
Additionally, if you received a Form 1099 for interest, dividends, or other income, you may need to file. The threshold for 1099 income is lower than the threshold for wages, so check the IRS rules for your specific situation.
When filing is optional but still makes sense
If your combined income falls below the filing threshold and you have no self-employment income or tax withholding, filing is technically optional. However, you should still consider filing if you may have access to for refundable tax credits.
The Earned Income Tax Credit (EITC) is the most common reason to file when you are not required to. This credit can return money to you even if you owe no tax. If you worked during the year and earned less than a certain amount, you may may have access to. The credit is larger for people with children. Filing a tax return is how you claim it.
The Child Tax Credit and the Additional Child Tax Credit are also refundable in part, meaning you can receive money back. If you have dependents and earned income, filing may put money in your pocket even if your income is low.
How to find your specific filing threshold
The IRS publishes filing thresholds each year in Publication 17, which is free and available on the IRS website. You can also find the thresholds on the IRS.gov homepage under "Filing Requirements."
To use the threshold table, you need to know your filing status (single, married filing jointly, married filing separately, head of household, or may have access to widow or widower) and your age on December 31 of the tax year. Then you look up your combined income against the threshold for your category.
If you are unsure whether you must file, the IRS also offers an interactive tool on its website. You answer a few questions about your income and filing status, and it tells you whether filing is required. This tool is updated each year to reflect the current thresholds.
What happens if you do not file when you should
If you are required to file and do not, the IRS may assess a failure-to-file penalty. This penalty is usually 5 percent of the unpaid tax for each month the return is late, up to 25 percent total. If you owe no tax, the penalty is smaller or may not explore, but it is still better to file on time.
If you filed late but are owed a refund, there is no penalty. The IRS will not penalize you for filing a return that shows you overpaid. However, there is a time limit: you generally have three years from the original due date to claim a refund. After that, the money goes to the U.S. Treasury.
If you are unsure whether you filed when you should have, you can contact the IRS or work with a tax professional to review your situation. The IRS is often willing to waive penalties if you have a reasonable cause for filing late.
Working with a tax professional on SSDI and taxes
Tax rules around SSDI can be confusing, especially if you have multiple income sources or if you are working while receiving benefits. A tax professional — whether a CPA, enrolled agent, or tax preparer — can review your specific situation and tell you whether you must file.
Many tax preparation services offer free filing for people with low to moderate income. The IRS maintains a list of free tax preparation sites in your area through the Free File program. You can search for a location on IRS.gov.
If you cannot afford a tax professional and do not may have access to for free services, you can call the IRS directly at 1-800-829-1040. They can answer questions about your filing requirement, though they cannot prepare your return for you.
Frequently Asked Questions
Do I have to pay taxes on my SSDI benefits?
SSDI benefits are generally not taxable. However, if your combined income is high enough, up to 85 percent of your benefits can become taxable. This happens only if your combined income exceeds a threshold set by the IRS, which varies by filing status. Most people receiving only SSDI pay no tax on the benefits themselves.
What if I worked part of the year and received SSDI?
You must count both your wages and your SSDI toward your combined income to determine if you must file. If you had taxes withheld from your pay, you should file to claim a refund. Even if you are not required to file, filing may let you claim credits like the EITC if you earned less than the income limit.
Can I file taxes online if I receive SSDI?
Yes. SSDI income does not prevent you from filing online. You can use free IRS-approved software through the Free File program, or you can use commercial tax software. When you enter your SSDI income, the software will calculate whether any portion is taxable based on your combined income.
What if I missed filing taxes in a previous year?
You can file a late return at any time. If you are owed a refund, there is no penalty for filing late, though you must file within three years to claim it. If you owe tax, the IRS will assess a penalty and interest, but filing is still better than not filing. Contact a tax professional or the IRS for help with back years.
Does filing taxes affect my SSDI benefits?
Filing a tax return does not change your SSDI benefits. SSDI is not means-tested, so your income does not affect how much you receive. However, if you are working and earning above the substantial gainful activity limit, that can affect your benefits — but that is a separate rule from taxes.