You may have to file taxes even though you receive SSDI
Whether you file taxes depends on how much income you have from all sources combined, not on whether you receive SSDI. Social Security Disability Insurance itself is not taxable income in most cases. But if you have other income—wages from work, interest, dividends, or self-employment earnings—you may cross 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 must file if their gross income is $14,600 or more. If you are 65 or older, the threshold is $18,350. These numbers include all income except SSDI, unless you also receive other Social Security benefits like retirement or survivor benefits.
Even if you are below the threshold, filing can be worth doing. You may be owed a refund from taxes withheld from wages, or you may may have access to for the Earned Income Tax Credit (EITC) or other credits that only appear when you file.
Key Takeaways
- SSDI payments themselves are not taxable, so they do not count toward the income threshold that triggers a filing requirement.
- You must file if your income from wages, self-employment, interest, or other sources reaches the annual threshold set by the IRS, which varies by age and filing status.
- Filing even when you are not required can result in a refund or credits like the EITC that reduce what you owe in future years.
- If you work while on SSDI, you may have taxes withheld from your paycheck, making a refund likely when you file.
How SSDI income is treated differently from other income
The IRS treats SSDI as a non-taxable benefit. This means your SSDI payment does not get reported as income on your tax return and does not count toward the income threshold that requires you to file. If SSDI is your only income source, you do not have to file a federal tax return.
Other Social Security benefits—such as retirement benefits or survivor benefits—are treated differently. If you receive both SSDI and another type of Social Security benefit, the rules become more complex, and you may need to include some of that other benefit in your taxable income calculation. This is rare but happens in specific situations, such as when someone receives both disability and retirement benefits.
The key distinction is that SSDI itself never becomes taxable. What matters for filing is whether you have income from other sources that pushes you over the threshold.
Income sources that count toward the filing threshold
Several types of income count toward the threshold that determines whether you must file. Wages from a job—whether part-time or full-time—count in full. Self-employment income counts as well. Interest from a savings account or certificate of deposit counts. Dividends from stocks or mutual funds count. Rental income, capital gains, and income from a business all count.
Income that does not count includes SSDI, Supplemental Security Income (SSI), most state and local government benefits, and gifts. Some types of income have their own special rules—for example, if you receive unemployment benefits, you may have to include them even if they are below the threshold.
If you are unsure whether a particular income source counts, the IRS publication 17 (Your Federal Income Tax) lists the rules in detail. You can also contact the IRS directly at 1-800-829-1040.
What happens if you work while receiving SSDI
SSDI has a work incentive program that allows you to earn money without when ready losing your benefits. During the first nine months you work (called the Trial Work Period), you can earn any amount and keep your full SSDI payment. After that, SSDI uses a different calculation—you lose one dollar of benefits for every two dollars you earn above a monthly threshold, which changes each year.
Even during the Trial Work Period, when you keep your full SSDI payment, you still have to pay income tax on your wages. Your employer withholds tax from your paycheck. When you file your tax return, you report those wages, and the IRS calculates whether you owe additional tax or are owed a refund. Many people who work while on SSDI file because they expect a refund.
If you earn enough that your SSDI payment is reduced, you still file taxes on your wages. The reduction in SSDI does not change your tax filing requirement—it is a separate calculation done by Social Security.
The difference between filing and owing taxes
Filing a tax return and owing taxes are not the same thing. You can file and owe nothing. You can file and receive a refund. You can file and owe a small amount. The filing requirement is based on income; what you actually owe depends on deductions, credits, and how much tax was already withheld from your pay.
If you worked and had taxes withheld, filing is often the only way to get that money back. The IRS does not automatically refund withheld taxes—you have to claim them by filing. If you earned less than the threshold but had taxes taken out, filing can result in a refund of hundreds of dollars.
Credits like the Earned Income Tax Credit can also reduce what you owe or create a refund. The EITC is designed for people with low to moderate income and can be worth several hundred dollars. You only receive it if you file.
How to determine your filing requirement
Start by adding up all your income for the year from sources other than SSDI. Include wages, self-employment income, interest, dividends, and any other taxable income. Do not include SSDI, SSI, or most government benefits.
Compare that total to the threshold for your age and filing status. The IRS publishes these thresholds each January for the previous tax year. For 2024, the thresholds are:
- Single, under 65: $14,600
- Single, 65 or older: $18,350
- Married filing jointly, both under 65: $29,200
- Married filing jointly, one spouse 65 or older: $30,750
- Married filing jointly, both 65 or older: $32,300
If your income is at or above the threshold for your situation, you must file. If it is below the threshold, filing is optional but may still benefit you if you had taxes withheld or may have access to for credits.
Where to file and what documents you need
You can file with the IRS using Form 1040, the basic individual income tax return. You can file on paper by mail or electronically using tax software or a tax professional. The IRS Free File program offers free filing software to people with income below a certain level—check IRS.gov to see if you may have access to.
You will need your Social Security number, proof of income (W-2 forms from employers, 1099 forms for self-employment or interest income), and records of any deductions or credits you plan to claim. Keep SSDI payment statements for your records, even though you do not report SSDI on your return—they document that your SSDI is not taxable.
The filing important date is April 15 each year, unless that date falls on a weekend or holiday. If you cannot file by then, you can request an extension, though an extension to file is not an extension to pay taxes owed.
Frequently Asked Questions
If I only get SSDI and no other income, do I have to file taxes?
No. SSDI is not taxable income, so if it is your only income source, you have no filing requirement. You do not have to file a tax return.
What if I earned money from a job but it was less than the threshold?
You are not required to file, but you should consider it. If your employer withheld taxes from your paycheck, filing will get you a refund. You may also may have access to for credits that only appear when you file.
Does working while on SSDI change my tax filing requirement?
No. Your filing requirement is based on the amount of income you earned, not on whether you receive SSDI. If your wages reach the threshold, you must file—whether or not SSDI is reduced because of your work.
Can I file taxes myself, or do I need a tax professional?
You can file yourself using free IRS software if your income is below the threshold for the Free File program. For more complex situations—such as self-employment income or multiple income sources—a tax professional or CPA can help may support you claim all credits you are owed.
What if I did not file 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 reduces interest and penalties. Contact the IRS or a tax professional to discuss your specific situation.