Most people on SSDI do not have to file federal income taxes

Whether you file taxes depends on how much income you have from all sources combined, not just your SSDI benefit. SSDI itself is not taxable income in most cases — the Social Security Administration does not count it as earnings that trigger a tax filing requirement. However, if you have other income (wages from work, interest, rental income, or other benefits), that income might push you over the threshold where the IRS requires you to file.

The threshold changes each year and depends on your age and filing status. For 2024, a single person under 65 with only SSDI and no other income does not have to file. But if you earned wages, had self-employment income, or received other types of income alongside your SSDI, you may need to file even if your total is modest.

Key Takeaways

  • SSDI benefits themselves are not taxable, so receiving SSDI alone does not require you to file federal income taxes.
  • If you have wages, self-employment income, or other income sources in addition to SSDI, you may have to file based on that other income.
  • The IRS publishes annual income thresholds that determine who must file; these change each year and vary by age and filing status.
  • Filing taxes when you are not required to can sometimes result in a refund, so some people file anyway to recover withheld taxes.
  • State income tax rules differ from federal rules, and some states tax SSDI or have lower filing thresholds than the federal government.

How the IRS counts income when you receive SSDI

The IRS has a specific definition of income for tax purposes, and SSDI is excluded from it. This means your SSDI check does not count toward the income threshold that determines whether you must file. If SSDI is your only income source, you are below the filing threshold no matter how much SSDI you receive each month.

Other income counts differently. Wages from work count in full. Self-employment income counts in full. Interest from a savings account counts. Distributions from a retirement account count. Unemployment benefits count. The IRS adds all of these together and compares the total to the annual threshold for your situation.

If you are unsure whether a specific type of income counts, the IRS publication 17 (Your Federal Income Tax) lists what does and does not count. You can also call the IRS at 1-800-829-1040 to ask about a specific income source.

Annual income thresholds for 2024 and how they work

For 2024, a single person under age 65 must file if their gross income is $14,600 or more. A single person age 65 or older must file if their gross income is $18,350 or more. These numbers are set by the IRS each year and typically increase slightly to account for inflation.

These thresholds explore only to income that counts toward the filing requirement — again, SSDI does not count. So if you are 62 years old, receiving $1,500 per month in SSDI, and earning $18,000 per year from part-time work, your gross income for tax purposes is $18,000, which exceeds the $18,350 threshold for someone your age. You would need to file.

If you are married and file jointly, the threshold is higher. If you are married filing separately, the threshold is lower. The IRS website publishes a table each year showing thresholds for every filing status and age combination. You can find this on IRS.gov or ask a tax preparer to check your situation.

When you should file even if you are not required to

Some people on SSDI choose to file taxes even though they are not required to. This usually makes sense if taxes were withheld from other income you received during the year. When you file, you report all your income and any taxes that were taken out. If more tax was withheld than you actually owe, the IRS sends you a refund.

For example, if you worked part-time and your employer withheld federal income tax from your paychecks, but your total income for the year was low enough that you owed no tax, filing would let you recover that withheld money. Without filing, that money stays with the IRS.

Filing can also protect you if you receive certain tax credits. The Earned Income Tax Credit (EITC) is available to people with low to moderate income, and you must file to claim it. If you worked during the year and had low income, you might be may have access to to this credit even if you are not required to file.

State income tax rules are different from federal rules

Some states do not have income tax at all. Others tax SSDI as income, and still others exempt SSDI but have lower filing thresholds than the federal government. This means you might not have to file federal taxes but still have to file state taxes, or vice versa.

States that currently tax SSDI include Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont. In these states, SSDI counts as income for state tax purposes even though it does not for federal purposes. If you live in one of these states and your SSDI plus other income exceeds the state threshold, you must file a state return.

Check your state's department of revenue website to find your state's filing threshold and whether SSDI is taxed. State rules change, so verify the current rules for your state rather than relying on information from previous years.

What to do if you are unsure whether you need to file

The safest approach is to gather your income documents and compare your total to the IRS threshold for your age and filing status. Collect your SSDI benefit statement (which you can get from your Social Security account online), any W-2 forms from employers, 1099 forms for other income, and statements from banks or investment accounts showing interest earned.

Add up all income except SSDI. If the total is below the threshold for your situation, you do not have to file. If it is above the threshold, you do. If you are close to the threshold or unsure whether a particular income source counts, a tax preparer or the IRS can help you figure it out.

Many communities offer free tax preparation through the Volunteer Income Tax information (VITA) program, which is run by the IRS. VITA sites help people with low to moderate income file for free. You can find a VITA site near you on the IRS website or by calling 211.

How SSDI affects other tax situations

If you are married and file jointly, your spouse's income counts toward the household filing threshold, not just yours. You and your spouse must file if your combined income exceeds the threshold for married filing jointly, even if only one of you receives SSDI.

If you receive both SSDI and Supplemental Security Income (SSI), the rules are similar — SSI is also not taxable income. However, SSI has strict rules about how much other income you can have before your benefit is reduced, so earning money while on SSI requires careful planning. This is separate from the tax filing question, but it matters for your overall benefits.

If you are self-employed and receiving SSDI, you must report your self-employment income on your tax return if it exceeds the filing threshold. You also need to understand how self-employment income affects your SSDI benefit itself — Social Security has work incentive programs that allow some earnings without losing your benefit, but the rules are complex and vary by situation.

Frequently Asked Questions

Can I get in trouble with the IRS if I do not file when I am not required to?

No. If you are not required to file based on your income, the IRS does not penalize you for not filing. However, if you had taxes withheld from wages or other income, you will not receive a refund unless you file. Filing is optional but can be beneficial if you are owed money.

Does receiving SSDI affect whether I can claim dependents on my taxes?

SSDI does not affect your ability to claim dependents. If you support a child or another dependent and meet the IRS requirements for claiming them, you can claim them on your return regardless of whether you receive SSDI. This is a separate question from whether you must file.

What if I did not file taxes in previous years when I should have?

You can file back taxes at any time. The IRS generally does not penalize you for filing late if you are owed a refund. If you owe taxes, filing sooner rather than later reduces interest and penalties. A tax preparer or VITA site can help you file prior-year returns.

Does my SSDI count as income for purposes of other benefits like food stamps or housing information?

SSDI is counted as income for most means-tested benefits like SNAP (food stamps) and housing information, even though it is not counted for tax purposes. The rules for each program are different, so check with the specific program to understand how your SSDI affects your may be able to access.

If I work and earn money, do I have to report it to Social Security and the IRS separately?

Yes. Reporting to Social Security and reporting to the IRS are two separate obligations. You must report work income to Social Security because it can affect your SSDI benefit. You must also report it to the IRS if it exceeds the filing threshold. The two agencies do not automatically share this information, so you are responsible for reporting to both.