Whether You Have to File Taxes on SSDI
You may have to file taxes even though you receive SSDI, depending on whether you have other income. SSDI payments themselves are not taxable income—the Social Security Administration does not count them as wages or earnings. However, if you earn money from work, have investment income, or receive other types of income alongside your SSDI, the IRS requires you to file a tax return if your total income exceeds certain thresholds.
The threshold that matters depends on your filing status and the types of income you have. A single person with only SSDI and no other income does not file. A single person with SSDI plus $400 or more in self-employment income must file. A single person with SSDI plus $12,950 or more in wages must file (for 2023; this amount changes yearly). The rules are different for married people, and they shift again if you have investment income or are over 65.
The safest approach is to add up all your income sources for the year, then check the IRS filing thresholds for your situation. If you are close to the threshold or unsure, filing does not hurt—and it may help you get a refund if taxes were withheld from your pay.
Key Takeaways
- SSDI payments are not taxable, so you do not count them toward the income threshold that determines whether you must file.
- You must file if your non-SSDI income (wages, self-employment, interest, dividends) exceeds the IRS threshold for your age and filing status.
- The threshold for a single person under 65 with only wages is $12,950 for 2023, but it is higher if you are 65 or older or have self-employment income.
- Even if you are not required to file, you should file if taxes were withheld from your pay, because you may receive a refund.
- The IRS publishes updated thresholds each year, so check the current year's rules before deciding not to file.
Income Sources That Count Toward the Filing Threshold
Only certain types of income count when you calculate whether you must file. SSDI does not count. Supplemental Security Income (SSI) does not count. Veterans benefits do not count. But wages from any job do count, even if you work part-time or earn very little.
Self-employment income counts, and the threshold is lower for self-employed people—$400 or more in net self-employment income requires filing, regardless of your age or other income. Interest from a savings account counts. Dividends from stocks count. Rental income counts. Gambling winnings count. Pensions count. Unemployment benefits count. If you received a settlement or inheritance, check whether it is taxable income in your state.
The key distinction is between taxable and nontaxable income. If you are unsure whether a particular payment is taxable, the organization that paid you should have sent you a form (a W-2 for wages, a 1099 for other income) or a letter stating whether the payment is taxable. If you did not receive documentation, contact the payer directly.
Filing Thresholds for Different Situations
The IRS sets different thresholds based on your age, filing status, and type of income. These thresholds determine whether you must file a return. The amounts below are for 2023 and change each year—the IRS publishes updated thresholds in late fall for the following tax year.
| Your Situation | 2023 Filing Threshold | Notes |
|---|---|---|
| Single, under 65, wages only | $12,950 | SSDI does not count toward this amount |
| Single, 65 or older, wages only | $15,550 | Higher threshold due to age |
| Single, any age, self-employment income | $400 | Much lower threshold for self-employed people |
| Married filing jointly, both under 65 | $25,900 | Combined income of both spouses |
| Married filing jointly, one spouse 65+ | $27,300 | One higher threshold applies |
| Married filing jointly, both 65+ | $28,700 | Both higher thresholds explore |
| Any income type with investment income | Varies | Check IRS rules for interest, dividends, capital gains |
If you are filing for a different year, visit IRS.gov or ask a tax preparer for that year's thresholds. The thresholds increase slightly each year to account for inflation.
How SSDI Interacts With Work Income
If you work while receiving SSDI, you may have to report your earnings to Social Security, but that is separate from filing taxes. Social Security has its own rules about how much you can earn before your SSDI payment is reduced or stopped. Those rules do not change whether you must file taxes with the IRS.
Report your work income to Social Security through your My Social Security account or by calling 1-800-772-1213. Report your income to the IRS by filing a tax return if your total income exceeds the filing threshold. Both agencies need to know, but they use the information for different purposes.
If you are working and receiving SSDI, you may also be using a work incentive program such as Impairment Related Work Expenses (IRWE) or Plan to Achieve Self-Support (PASS). These programs can reduce the income Social Security counts, but they do not reduce the income the IRS counts for tax filing purposes. File your taxes based on your actual gross income, not the amount Social Security counts after work incentives.
What to Do If You Are Not Sure Whether to File
If your income is close to the threshold or you have multiple income sources and are unsure how to add them up, file anyway. Filing when you are not required to does not create a problem. If you owe nothing, you owe nothing. If taxes were withheld from your pay, you will likely receive a refund.
You can file on your own using tax software (many free options are available through IRS Free File if your income is below a certain level), or you can work with a tax preparer. If you cannot afford a preparer, look for free tax preparation services in your area through the IRS Volunteer Income Tax information (VITA) program or the Tax Counseling for the Elderly (TCE) program.
Keep records of all income you received during the year, including any 1099 forms, W-2 forms, or letters from payers stating the amount. If you did not receive documentation for income you earned, ask the payer for it or contact the IRS for guidance on how to report it.
Refunds and Overpayment of Taxes
If your employer withheld taxes from your pay but you do not owe taxes (because your income was below the threshold or because your withholding was more than you owed), filing a tax return is how you get that money back. The IRS does not return overpaid taxes unless you file.
You have three years to file a return and claim a refund. If you do not file within three years, the IRS keeps the money. If you did not file in previous years and believe you are owed a refund, you can still file those returns now, though you will need to gather documentation from those years.
Frequently Asked Questions
Do I have to report my SSDI to the IRS when I file taxes?
No. SSDI is not taxable income, so you do not report it on your tax return. You only report other income sources such as wages, self-employment, interest, or dividends. The IRS does not need to know about your SSDI.
What if I earned money from work but my employer did not give me a W-2?
Contact your employer and ask for a W-2 or a written statement of how much you earned. If the employer refuses or is unreachable, you can still file a tax return reporting the income you earned based on your own records (pay stubs, bank deposits, or other documentation). Include a note explaining that you did not receive a W-2.
If I file taxes, will it affect my SSDI payments?
Filing a tax return does not affect your SSDI payments. SSDI is based on your disability and your work history, not on your current income or tax filing. However, if you earned work income that triggered the filing requirement, you must also report that income to Social Security, which may affect your SSDI under Social Security's earnings rules.
Can I file taxes electronically if I receive SSDI?
Yes. You can file electronically through IRS Free File (if your income qualifies), through tax software, or through a tax preparer. Receiving SSDI does not restrict how you file. Electronic filing is usually faster and more accurate than paper filing.
What happens if I do not file taxes when I should have?
If you owed taxes and did not file, the IRS may assess penalties and interest. If you are owed a refund and do not file, you straightforward do not receive the money. If you realize you should have filed in a previous year, file that return as soon as possible.