You do not receive a 1099 for Social Security Disability Insurance (SSDI) income

Social Security sends you a Form SSA-1099-SM (or Form SSA-1099 for non-Medicare beneficiaries), not a 1099. This is the official tax document for SSDI benefits. The form shows the total benefits you received in the tax year and is used to determine whether your benefits are taxable. A 1099 is used for self-employment income, contractor payments, and certain other income sources — not for Social Security.

The SSA mails Form SSA-1099-SM to you by January 31 each year. You use this form to complete your federal tax return. Whether you actually owe tax on your SSDI depends on your total income from all sources and your filing status, not on the form itself.

Key Takeaways

  • SSDI recipients receive Form SSA-1099-SM from Social Security, not a 1099 form, by January 31 each tax year.
  • The SSA-1099-SM shows your total SSDI benefits for the year and is required to file your federal tax return accurately.
  • SSDI benefits may be taxable if your combined income (SSDI plus other income) exceeds certain thresholds that depend on your filing status.
  • You must report the form and your SSDI income on your tax return even if no tax is owed, because the IRS matches it to your return.
  • If you work and earn wages while on SSDI, you will receive both a W-2 (for wages) and an SSA-1099-SM (for benefits) — these are separate documents.

What Form SSA-1099-SM shows and how to read it

Form SSA-1099-SM has several boxes. Box 1a shows your gross SSDI benefits for the year. Box 1b shows any benefits withheld by the SSA (for example, if you were overpaid in a prior year). Box 2 shows the net benefits you actually received. Boxes 3 and 4 show federal income tax withheld, if any — most SSDI recipients do not have tax withheld, so these boxes are often blank.

The form is divided into two copies: one for you to keep with your records, and one that goes to the IRS. The IRS uses its copy to verify that you reported the income on your return. If your return does not match the form the SSA sent them, the IRS will contact you.

You should receive the form in the mail by January 31. If you do not receive it by mid-February, contact the SSA at 1-800-772-1213 and request a replacement. You can also view your form online through your my Social Security account if you have created one.

When SSDI benefits are taxable and when they are not

SSDI is taxable only if your combined income exceeds certain thresholds. Combined income means your SSDI benefits plus all other income: wages, self-employment income, interest, dividends, pensions, and other taxable sources. It does not include Supplemental Security Income (SSI), which is never taxable.

The thresholds depend on your filing status. For a single filer, if combined income is $25,000 or less, your SSDI is not taxable. For married filing jointly, the threshold is $32,000. For married filing separately, the threshold is $0 — meaning any SSDI is potentially taxable if you file separately. These thresholds have not changed since 1984 and do not adjust for inflation.

If your combined income exceeds the threshold, up to 85% of your SSDI benefits may be taxable. The exact amount depends on how far over the threshold you are. For example, a single filer with $30,000 in combined income would have some portion of their SSDI taxed, but not all of it. The IRS worksheet in the tax instructions walks you through the calculation, or a tax preparer can do it for you.

How work income affects your tax situation on SSDI

If you work while receiving SSDI, you will receive both a W-2 (from your employer, showing wages) and an SSA-1099-SM (from Social Security, showing SSDI benefits). Both forms go to the IRS. You must report both on your tax return.

Work income counts toward your combined income threshold. For example, if you earned $15,000 in wages and received $18,000 in SSDI benefits, your combined income is $33,000. As a single filer, you are $8,000 over the $25,000 threshold, so some of your SSDI becomes taxable. The wages themselves are always taxable; the question is whether the SSDI is also taxable.

Work income also affects your SSDI benefits themselves through the Substantial Gainful Activity (SGA) limit and the Trial Work Period (TWP). These are separate from taxes. If you earn above the SGA limit ($1,550 per month in 2024, though this changes yearly), your benefits may be suspended. The TWP allows you to test work without losing benefits for nine months. These rules are about benefit may be able to access, not about tax forms.

What to do if you did not receive Form SSA-1099-SM

If you do not receive your form by mid-February, call the SSA at 1-800-772-1213. Have your Social Security number ready. The SSA can reissue the form or provide the information you need to file your return. You can also check your my Social Security account online to view your form before it arrives in the mail.

Do not file your tax return without the form or the information from it. The IRS expects to see the SSA-1099-SM matched to your return. If you file without it and the SSA later sends the form to the IRS, the IRS will notice the mismatch and may contact you or delay your refund.

If you moved and the SSA does not have your current address, update it when ready through my Social Security or by calling 1-800-772-1213. The SSA uses the address on file to mail all tax documents and benefit notices.

How to report SSDI on your tax return

You report your SSDI benefits on Form 1040, the main federal income tax form. The benefits go on line 5b (for single filers and most others) or line 5b of Schedule 1 if you use that form. You also report the amount on line 5a, which is the total you received. The difference between 5a and 5b is the taxable portion — if your benefits are not taxable, lines 5a and 5b will be the same.

If you use tax software, the software will ask you to enter your SSDI information from the SSA-1099-SM and will calculate the taxable portion for you. If you file by hand or with a tax preparer, use the worksheet in the Form 1040 instructions or IRS Publication 915 to determine how much is taxable.

You must file a return and report your SSDI even if no tax is owed. The IRS requires this so it can match the form the SSA sent them to your return. Filing also allows you to claim the Earned Income Tax Credit (EITC) or other credits if you work and are otherwise may be able to access.

Frequently Asked Questions

Can I get a 1099 instead of an SSA-1099-SM?

No. Social Security issues only the SSA-1099-SM for SSDI benefits. A 1099 is not used for Social Security income. If someone tells you that you should receive a 1099 for SSDI, they are mistaken. Always use the SSA-1099-SM that arrives from Social Security.

What if I received SSDI for only part of the year?

The SSA-1099-SM will show only the benefits you received during the months you were may be able to access. If you started SSDI in June, the form will show benefits from June through December. You report only that amount on your tax return.

Do I have to file a tax return if my only income is SSDI?

If SSDI is your only income and it is below the filing threshold for your age and status, you may not be required to file. However, filing is often worth doing anyway because you may be able to claim a refundable credit or recover taxes withheld. Check the IRS filing requirements or ask a tax preparer.

What happens if the SSA-1099-SM shows the wrong amount?

Contact the SSA when ready at 1-800-772-1213. The SSA can correct the form and send you a corrected version (Form SSA-1099-SM-C). Do not file your tax return with an incorrect form. Wait for the corrected form or call the SSA for the correct amount before you file.

If I have Medicare, will my SSA-1099-SM be different?

If you have Medicare Part B or Part D, your premiums may be deducted from your SSDI benefits. The SSA-1099-SM will show your gross benefits (before the deduction) in box 1a and the net amount you received in box 2. You report the gross amount on your tax return, not the net.