The short answer: it depends on your total income

You may need to file a tax return even though you receive SSDI, because the IRS counts SSDI benefits as income in certain situations. The deciding factor is whether your total income — including SSDI, wages, interest, and other sources — crosses the threshold the IRS sets each year. That threshold changes annually and depends partly on your age and filing status.

The IRS does not automatically know about your SSDI. You report it yourself on your tax return, just like other income. If you do not file when you should, you may miss out on refunds you are owed, or face penalties later.

Key Takeaways

  • You must file a tax return if your total income (including SSDI, wages, and other sources) exceeds the annual threshold set by the IRS for your age and filing status.
  • SSDI itself is not taxable, but it counts toward the income limit that determines whether other income becomes taxable.
  • The IRS income thresholds change each year and are higher for people over 65 and for married couples filing jointly.
  • If you do not file when required, you may lose refundable tax credits and face penalties, even if you do not owe tax.
  • Form SSA-1099 from Social Security shows your SSDI income and arrives by early February each year.

How SSDI affects your tax filing requirement

SSDI benefits themselves are not taxable income. However, the IRS uses SSDI as part of a calculation to determine whether your other income becomes taxable. This is called the "combined income" test. Combined income includes half of your SSDI plus all your other income — wages, interest, dividends, self-employment income, and so on.

If your combined income exceeds a certain amount, you must file a return. For 2024, that threshold is $25,550 for a single person under 65, and $32,200 for a married couple filing jointly where both are under 65. If you are 65 or older, the thresholds are higher: $27,050 for single filers and $33,550 for married couples filing jointly.

These thresholds change each year. The Social Security Administration publishes updated figures in the fall for the following tax year. Even if you do not owe tax, filing may be worth doing if you worked and had taxes withheld from your paycheck — you could receive a refund.

When you must file even with no tax owed

You may be required to file a return even if you will not owe any tax. This happens when you have earned income (wages from a job) and your employer withheld federal income tax from your paychecks. Filing allows you to claim that money back as a refund.

You should also file if you are owed a refundable tax credit, such as the Earned Income Tax Credit (EITC). The EITC can be worth hundreds or thousands of dollars, but you only receive it by filing a return. Many people on SSDI who work part-time or seasonally may have access to for the EITC and do not realize it.

If you do not file when you should, the IRS will not send you a notice demanding a return. You straightforward will not receive the refund or credit you are owed. There is no way to claim it later.

What documents you will receive and when

In early February each year, Social Security mails you a Form SSA-1099 showing the total SSDI you received in the previous year. This form goes to the address Social Security has on file. If your address has changed, update it with Social Security before the end of January to make sure the form reaches you.

You will also receive a Form 1099-NEC or Form 1099-MISC if you had any other income — from a job, freelance work, or other sources. Your employer or the payer sends these forms to you and to the IRS by January 31.

Keep all 1099 forms. You will need them to fill out your tax return, whether you file on paper or electronically. If you lose a form, you can request a replacement from Social Security or the payer, though it may take a few weeks.

How to report SSDI on your tax return

If you file a return, you report your SSDI on Form 1040 (the main individual income tax form) or Form 1040-SR if you are 65 or older. You enter the amount from your Form SSA-1099 in the section for Social Security benefits. The form itself walks you through the combined income calculation.

You do not need to attach the SSA-1099 to your return, but keep it with your records in case the IRS asks questions later. If you use tax software or work with a tax preparer, you straightforward provide them with the SSA-1099 and they handle the rest.

If you received SSDI for only part of the year — for example, if you started receiving it in June — you report only the amount you actually received, not a full year's worth.

What happens if you do not file when you should

If you do not file a return when the IRS thresholds say you must, you will not face a penalty for not filing, because SSDI is not taxable income itself. However, you will lose any refund you are owed. The IRS does not automatically send refunds to people who do not file — you have to claim them by filing a return.

You have three years to file a return and claim a refund. After three years, the money is forfeited. If you realize you should have filed in a previous year, you can still file that year's return and claim the refund, as long as it has not been more than three years.

If you had taxes withheld from wages and did not file, you are straightforward leaving your own money on the table. There is no penalty from the IRS, but there is a real cost to you.

Free and low-cost filing options

If your income is below a certain level, you may be able to file for free using IRS Free File, a program run by the IRS and participating tax software companies. The income limit for Free File is updated each year — for 2024, it is $79,000 for most filers. Many people on SSDI fall below this threshold.

You can also file for free at a VITA site (Volunteer Income Tax information). VITA is a free tax preparation service run by IRS-trained volunteers. You can find a VITA site near you by calling 211 or visiting the IRS website. VITA sites are especially helpful if you have questions about SSDI and taxes, because the volunteers are trained to handle benefits.

If you prefer to work with a paid tax preparer, costs vary widely. Some charge a flat fee; others charge by the hour. Ask about the cost upfront before you begin.

Frequently Asked Questions

Is SSDI itself taxable?

No. SSDI benefits are not taxable income. However, the IRS counts SSDI toward your combined income to determine whether your other income becomes taxable. This is an important distinction — SSDI does not create a tax bill by itself, but it can affect whether you owe tax on wages or other income.

What if I work part-time and receive SSDI?

You must file a return if your wages plus half your SSDI exceeds the IRS threshold for your age and filing status. You should file even if you do not owe tax, because you may be owed a refund or the Earned Income Tax Credit. Many people on SSDI who work part-time may have access to for EITC and do not know it.

Do I need to file if I have no income except SSDI?

No. If SSDI is your only income, you do not need to file a federal tax return. However, you may want to file anyway if you had taxes withheld from other income in the past or if you think you might may have access to for a refundable credit.

What if I did not receive a Form SSA-1099?

Contact Social Security at 1-800-772-1213 and ask them to mail a replacement. You can also create a my Social Security account online and view your SSA-1099 there. If you are filing soon, you can file without the form in hand — you know the amount from your SSDI statements — and request the form later if needed.

Can I file my taxes online if I receive SSDI?

Yes. You can file electronically using IRS Free File (if your income qualifies), tax software you purchase, or a tax preparer. Electronic filing is faster and more find than mailing a paper return. You will need your Form SSA-1099 and any other income documents before you start.