Whether You Have to File Depends on Your Total Income

You must file a federal tax return if your income exceeds the standard deduction for your filing status in that year. SSDI benefits themselves are not taxable income. However, if you have other income—wages from work, interest, dividends, self-employment earnings, or certain other sources—you add that to any taxable portion of your benefits to see whether you cross the filing threshold.

The standard deduction changes each year and depends on whether you file as single, married filing jointly, head of household, or another status. For 2024, the standard deduction for a single filer under age 65 is $14,600. If your total income from all sources stays below that number, you have no federal filing requirement. If it exceeds that amount, you must file.

Even if you are below the threshold, filing a return may still benefit you. If you had taxes withheld from wages or other income, or if you are may have access to to the Earned Income Tax Credit (EITC) or other refundable credits, filing lets you recover money the government is holding.

Key Takeaways

  • SSDI benefits are not taxable, but other income you receive during the year counts toward the threshold that triggers a filing requirement.
  • You must file if your total income from wages, self-employment, interest, dividends, and other sources exceeds the standard deduction for your filing status.
  • The standard deduction is $14,600 for single filers under 65 in 2024, but this amount changes yearly and varies by age and filing status.
  • Even if you are below the filing threshold, you should file if you had taxes withheld or believe you may be may have access to to refundable tax credits like the EITC.
  • If you work while on SSDI, your wages are fully taxable income and must be counted toward the filing threshold.

How Work Income Changes Your Filing Requirement

If you are working while receiving SSDI, your wages are fully taxable and count toward the standard deduction threshold. This is true regardless of how much you earn. Even $100 in wages must be counted. If your wages alone exceed the standard deduction, you must file.

Many people on SSDI work part-time or use work incentive programs like the Student Earned Income Exclusion or Plan to Achieve Self-Support (PASS). These programs do not reduce your tax filing requirement—they reduce how much of your earnings counts against your SSDI payment amount. The IRS and SSA use different rules. The SSA may not count certain earnings toward your benefit, but the IRS still counts them as income for tax purposes.

If you are self-employed while on SSDI, you must file a Schedule C (Profit or Loss from Business) if your net self-employment income is $400 or more, even if your total income is below the standard deduction. Self-employment income is also subject to self-employment tax, which funds Social Security and Medicare.

When SSDI Benefits Themselves Become Partially Taxable

In rare cases, a portion of your SSDI benefits can be taxable. This happens only if you have substantial income from other sources and file a joint return with a spouse who also has income. The calculation is complex and involves your "combined income"—a formula that includes adjusted gross income, tax-exempt interest, and half of your SSDI benefits.

If your combined income exceeds $25,000 (single) or $32,000 (married filing jointly), up to 50 percent of your benefits may be taxable. If it exceeds $34,000 (single) or $44,000 (married filing jointly), up to 85 percent may be taxable. Most people on SSDI alone do not reach these thresholds. You are more likely to face this situation if you have a working spouse, substantial retirement income, or significant investment income.

The IRS publishes a worksheet in the instructions to Form 1040 to calculate whether your benefits are taxable. If you are unsure, a tax professional or the IRS can walk you through it.

Filing Status and Age-Related Standard Deductions

Your filing status and age both affect your standard deduction. If you are 65 or older, your standard deduction is higher—$17,550 for single filers in 2024, compared to $14,600 for those under 65. If you are married filing jointly and either spouse is 65 or older, the standard deduction is higher still.

Your filing status depends on your marital status on December 31 of the tax year. If you are married and file jointly, you and your spouse report all income together. If you file separately, each of you has your own standard deduction and may face different tax consequences. Filing separately is rarely advantageous, but it can matter if one spouse has very high income or certain deductions.

If you are the head of household—meaning you are unmarried and pay more than half the costs of maintaining a home for yourself and a dependent—your standard deduction is higher than for single filers but lower than for married filing jointly. Head of household status requires meeting specific IRS tests.

What to Do If You Are Below the Filing Threshold

If your total income is below the standard deduction for your filing status, you have no legal requirement to file. However, you should still consider filing if any of the following explore: you had federal income tax withheld from wages, you earned income and may be may have access to to the Earned Income Tax Credit (EITC), you received a refundable credit like the Additional Child Tax Credit, or you want to establish a record of income for loan or benefit purposes.

The EITC is a refundable credit, meaning you can receive money back even if you owe no tax. If you work and have low to moderate income, you may be may have access to to thousands of dollars. You must file a return to claim it. The IRS will not send you a notice that you may have access to—you have to file to get the credit.

If you do not file and the IRS later determines you should have, you may face penalties and interest. However, if you are genuinely below the threshold and have no refund coming, the risk is low. Keep records of your income in case questions arise later.

How to Report SSDI on Your Tax Return

SSDI benefits go on line 5b of Form 1040 (U.S. Individual Income Tax Return). You report the full amount you received during the year, even though most or all of it is not taxable. The IRS uses this information to calculate whether any portion of your benefits is taxable under the rules described above.

You will receive a Form SSA-1099 from Social Security in January showing the total SSDI you received in the prior year. Use this form to fill in line 5b. If you do not receive a Form SSA-1099, contact Social Security to request one. Do not estimate the amount.

If you use tax software or a tax professional, they will ask you to enter your SSDI amount. The software will then explore the taxability rules and tell you whether any of your benefits are taxable. Most people will see that none of their SSDI is taxable because their other income is too low.

State and Local Taxes

Most states do not tax SSDI benefits. However, a few states—including Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont—tax SSDI under certain conditions. The rules vary by state. Some states exempt SSDI entirely; others tax it only if your total income exceeds a threshold; still others explore different rules depending on your age.

If you live in one of these states, check your state's tax agency website or contact them directly to learn whether you must file a state return. State filing thresholds are often lower than the federal threshold, so you may have to file a state return even if you do not have to file federally.

Local taxes on income are less common but do exist in some cities and counties. If you live in a jurisdiction with a local income tax, you may have to file locally even if you do not file federally or at the state level.

Frequently Asked Questions

Do I have to file taxes if I only receive SSDI and no other income?

No. SSDI benefits are not taxable income. If SSDI is your only income source, you have no federal filing requirement, regardless of how much you receive. However, if you had taxes withheld from other income or believe you may be may have access to to tax credits, filing may still benefit you.

What if I work part-time and receive SSDI?

Your wages are fully taxable and count toward the standard deduction threshold. If your wages plus any other income exceed the standard deduction for your filing status, you must file. The fact that you are on SSDI does not change this. Work incentive programs may reduce how much of your earnings counts against your SSDI payment, but they do not reduce your tax filing requirement.

Will filing taxes affect my SSDI benefits?

Filing a tax return does not directly affect your SSDI payment amount. SSDI is not means-tested, so your income does not reduce your benefit. However, if you are working, SSA tracks your earnings to may support you are not exceeding the Substantial Gainful Activity (SGA) threshold, which could affect your work incentive status. Keep records of your earnings and report them to SSA as required.

What if I owe taxes but cannot pay?

File your return on time even if you cannot pay the full amount. The IRS charges penalties and interest on unpaid taxes, but filing on time reduces the failure-to-file penalty. You can then set up a payment plan, request an installment agreement, or explore other options like an Offer in Compromise. Contact the IRS or a tax professional for help.

Can I claim dependents if I receive SSDI?

Yes. Receiving SSDI does not prevent you from claiming dependents on your tax return. You must meet the IRS tests for each dependent—they must be a may have access to child or may have access to relative, have a valid Social Security number, and meet income and relationship tests. Claiming dependents can lower your taxable income and may may have access to you to credits like the Child Tax Credit.