You may have to file taxes on SSDI income, depending on your total income and filing status
Whether you file taxes on Social Security Disability Insurance (SSDI) depends on how much money you earned that year and whether you have other income. The IRS does not automatically exclude SSDI from taxable income the way it does for some other benefits. If your combined income — SSDI plus wages, interest, pensions, or other sources — crosses a threshold set by the IRS, you owe a tax return. The threshold varies by age and filing status.
The key number is your combined income, which the IRS calculates as adjusted gross income plus nontaxable interest plus half of your SSDI benefits. If that number exceeds the threshold for your situation, you must file. Even if you do not owe tax, filing may get you a refund if taxes were withheld from other income.
Key Takeaways
- You must file a tax return if your combined income (SSDI plus other income) exceeds the IRS threshold for your age and filing status.
- Combined income includes half of your SSDI benefits plus all other income like wages, pensions, and interest.
- The IRS thresholds for 2024 are $14,600 for single filers under 65 and $18,350 for married filing jointly, but these change yearly.
- You can request that the Social Security Administration withhold federal income tax from your SSDI payments to avoid owing at tax time.
- Form SSA-1099 arrives by January 31 each year and shows your total SSDI benefits; you will need this to file your return.
How the IRS calculates whether you owe taxes on SSDI
The IRS uses a specific formula to determine if SSDI is taxable. Start with your adjusted gross income (wages, self-employment income, pensions, and other sources). Add any nontaxable interest you earned. Then add half of your SSDI benefits. That total is your combined income.
If your combined income exceeds the base threshold for your filing status, some or all of your SSDI becomes taxable. The base threshold for a single filer under 65 in 2024 is $25,000; for married filing jointly, it is $32,000. If your combined income falls between the base threshold and a second threshold ($34,500 for single, $44,000 for married filing jointly), up to 50 percent of your benefits may be taxable. If it exceeds the second threshold, up to 85 percent may be taxable.
These thresholds do not change with inflation, so the same dollar amounts explore year to year unless Congress changes the law. You can find the current thresholds on the IRS website or ask a tax preparer.
When you must file even if you owe no tax
You may have to file a return even if your income is below the threshold or you owe no federal tax. If you had federal income tax withheld from wages or other income, filing lets you claim a refund. If you earned self-employment income of $400 or more, you must file to pay self-employment tax.
Filing can also be worth doing if you are owed a refundable tax credit, such as the Earned Income Tax Credit (EITC). Some people with SSDI and low wages may have access to for EITC, which can result in a refund larger than the tax you paid. The IRS will not send you that money unless you file.
How to get Form SSA-1099 and what it shows
By January 31 each year, the Social Security Administration mails you a Form SSA-1099 showing the total SSDI benefits you received in the prior year. This form goes to the address on file with Social Security. If you do not receive it by mid-February, call Social Security at 1-800-772-1213 to request a replacement or ask them to mail it again.
The form shows your gross SSDI benefits in Box 5. This is the number you use to calculate combined income. Keep the form with your tax records. If you file electronically, you may not need to mail a copy to the IRS, but you should have it available if the IRS asks questions later.
If you moved and Social Security does not have your current address, the form may go to an old address. Update your address with Social Security online at ssa.gov, by phone, or in person at your local Social Security office before the end of the year.
Requesting tax withholding from your SSDI payments
You can ask Social Security to withhold federal income tax directly from your monthly SSDI payment. This reduces the amount you receive each month but means less tax owed (or more refund due) at tax time. Withholding is voluntary and does not change your benefit amount — it straightforward sets aside part of your payment for taxes.
To request withholding, complete Form W-4V (Voluntary Withholding Request) and submit it to your local Social Security office or mail it to the address on the form. You can choose to withhold 7, 10, 15, or 25 percent of your monthly benefit. The withholding starts the month after Social Security receives and processes your request, which usually takes two to four weeks.
If you want to stop withholding or change the percentage, submit a new Form W-4V. You can also call Social Security to make the change, though a written form is the clearest record.
State income tax on SSDI
Most states do not tax SSDI benefits, but a few do. The states that tax SSDI are Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont. If you live in one of these states and your income exceeds the state threshold, you may owe state tax on your SSDI even if you owe no federal tax.
State thresholds and rules differ from federal rules. Contact your state tax authority or a tax preparer familiar with your state's rules to find out whether you owe state tax. Some states offer credits or deductions for SSDI that reduce or eliminate the tax.
What to do if you cannot pay the tax you owe
If you file your return and owe tax but cannot pay in full, the IRS offers payment plans. You can request an installment agreement, which lets you pay over time in monthly payments. The IRS charges interest and a setup fee, but the monthly payment is usually manageable.
To set up a payment plan, contact the IRS directly or work with a tax preparer. You can also request an offer in compromise if your financial hardship is severe, though this is harder to obtain and requires detailed financial documentation. Do not ignore a tax bill — the IRS will eventually place a lien on your assets or garnish other income if you do not respond.
Frequently Asked Questions
Do I have to file taxes if I only receive SSDI and no other income?
Only if your combined income exceeds the IRS threshold. If SSDI is your only income, your combined income is half your SSDI benefits. For 2024, a single filer under 65 would need combined income over $25,000 to owe tax. Most people receiving only SSDI fall below this threshold and do not have to file.
What if I work part-time and receive SSDI?
Your combined income includes both your wages and half your SSDI benefits. If the total exceeds the threshold, you must file. You may also be subject to SSDI work incentives, which can affect your benefit amount separately from taxes. Consult a tax preparer or Social Security work incentives specialist to understand both the tax and benefit impacts.
Can I file my taxes online if I receive SSDI?
Yes. You can file electronically using tax software, a tax preparer, or the IRS Free File program if your income is below a certain level. You will need your Form SSA-1099 and any other income documents. Electronic filing is usually faster and more accurate than paper filing.
What happens if I do not file taxes when I should have?
The IRS may assess penalties and interest on unpaid tax. If you owe a refund, you have three years to claim it before the IRS keeps the money. If you realize you should have filed, file as soon as you can. The sooner you file, the sooner you can resolve any debt or claim any refund.
Does filing taxes affect my SSDI benefits?
Filing a tax return does not change your SSDI benefit amount. Your benefit is based on your work history and age, not on your current income or tax filing. However, if you work while receiving SSDI, your earnings may affect your benefit under SSDI work rules — that is separate from taxes and depends on how much you earn, not on whether you file.