Whether you file taxes on SSDI depends on your total income and filing status

You may have to file a federal tax return even though you receive Social Security Disability Insurance (SSDI). The Internal Revenue Service (IRS) looks at your combined income—not just your SSDI payments—to decide. Combined income includes your SSDI, wages from work, interest, dividends, and other money you receive. If your combined income exceeds a certain threshold based on your age and filing status, you must file.

The threshold changes each year. For 2024, a single person under 65 with SSDI must file if their combined income is more than $14,600. If you're 65 or older, the threshold is higher. These numbers shift annually, so the amount that triggered a filing requirement last year may not explore this year.

Many people on SSDI have combined income below the threshold and don't have to file. But even if you're not required to file, you may want to—especially if taxes were taken from your paychecks or if you worked part of the year. Filing can result in a refund.

Key Takeaways

  • You must file taxes if your combined income (SSDI plus all other income) exceeds the IRS threshold for your age and filing status, which changes yearly.
  • Combined income includes SSDI payments, wages, interest, dividends, rental income, and other money received during the tax year.
  • If you worked during the year and had taxes withheld from your paychecks, filing a return may result in a refund even if you weren't required to file.
  • The IRS publishes updated income thresholds each January; you can find the current year's limits on IRS.gov or by calling 1-800-829-1040.

How the IRS calculates combined income for SSDI recipients

Combined income is not the same as your SSDI payment amount. The IRS formula includes your SSDI plus 50 percent of your benefits, plus any other income. This means even if your SSDI is your only source of money, you may still have reportable combined income.

For example, if you receive $1,500 in SSDI per month and have no other income, your combined income for tax purposes is $1,500 plus 50 percent of $1,500 ($750), which equals $2,250 per month. This is well below the filing threshold, so you would not have to file. But if you also earned $12,000 from part-time work that year, your combined income would be $12,000 plus $1,500 plus $750, which exceeds the threshold and requires you to file.

Other income that counts toward combined income includes wages, self-employment income, interest from savings accounts, stock dividends, rental income, and money from a pension or annuity. Gifts and inheritances generally do not count as income for this purpose.

When you must file even if you're below the threshold

Even if your combined income is below the IRS threshold, you must file a return if you had self-employment income of $400 or more during the year. Self-employment income includes money from freelance work, a home business, or gig work like rideshare or delivery services. The $400 rule applies regardless of your other income.

You should also file if you received an Individual Taxpayer Identification Number (ITIN) and had income during the year, or if you're claiming a dependent or a tax credit you're may have access to to. Some tax credits—like the Earned Income Tax Credit (EITC)—can result in refunds larger than the taxes you paid, making it worthwhile to file even when not required.

What happens if you don't file when you should

If you owe taxes and don't file, the IRS can assess penalties and interest on the amount owed. The failure-to-file penalty is typically 5 percent of unpaid taxes for each month the return is late, up to 25 percent. Interest accrues daily on unpaid taxes, currently at a rate set quarterly by the IRS.

If you're owed a refund but don't file, you straightforward don't receive it. The IRS holds refunds for three years; after that, the money goes to the U.S. Treasury. If you think you're owed a refund from a prior year, you can still file that year's return to claim it, even years later.

The IRS can also use your SSDI payments to offset unpaid federal taxes, student loans in default, or child support arrears through a process called offset. Filing on time and accurately helps you avoid these complications.

How to find the current year's filing threshold

The IRS publishes updated income thresholds each January on IRS.gov. You can search for "SSDI filing requirements" or "combined income threshold" on their website. The thresholds vary by filing status (single, married filing jointly, married filing separately, head of household, and may have access to widow or widower) and by age (under 65 or 65 and older).

You can also call the IRS at 1-800-829-1040 to ask about the current threshold for your situation. Have your filing status and age ready when you call. The IRS also publishes Publication 915, which explains how SSDI and Tier 1 Railroad Retirement Benefits are taxed—this document walks through the combined income calculation step by step.

Filing your return with SSDI income

When you file, you'll report your SSDI on Form 1040 (the main federal income tax return). Your SSDI payments are reported on line 5b, labeled "Social security benefits." You'll also receive a Form SSA-1099 from Social Security each January showing the total SSDI you received the previous year; use this form to complete your tax return.

If you also had wages from work, you'll report those on Schedule 1 (Additional Income) and attach it to your Form 1040. If you had self-employment income, you'll complete Schedule C (Profit or Loss from Business) and Schedule SE (Self-Employment Tax). Many people file using tax software or work with a tax preparer; both can handle SSDI income correctly.

You can file by mail, electronically through IRS.gov, or through a tax professional. Electronic filing is faster and reduces errors. If you can't afford a tax preparer, the IRS offers free tax preparation through the Volunteer Income Tax information (VITA) program at community centers and libraries.

Frequently Asked Questions

Do I have to pay taxes on my SSDI payments?

You may have to pay federal income tax on a portion of your SSDI, depending on your combined income. Up to 85 percent of your benefits can be taxable if your combined income is high enough. However, many SSDI recipients have combined income below the threshold and owe no tax on their benefits.

What if I worked part of the year and had taxes taken out?

You should file a return to claim a refund of the taxes withheld from your paychecks. Even if you're not required to file, filing allows you to recover money the employer took from your wages. The IRS will not automatically refund you—you must file to get the money back.

Can I file taxes online if I receive SSDI?

Yes. You can file electronically through IRS.gov using free tax software, or you can use a tax professional. Electronic filing is faster and reduces mistakes. The IRS Free File program offers free software to people with income below a certain level.

What if I missed filing taxes in a previous year?

You can still file returns from prior years. If you're owed a refund, the IRS holds it for three years from the filing important date. File the missed return as soon as possible to claim any refund you're may have access to to. If you owe taxes, filing stops penalties from growing.

Where do I get my Form SSA-1099?

Social Security mails Form SSA-1099 to you each January showing your SSDI payments from the previous year. You can also view and read it from your my Social Security account at ssa.gov. If you don't receive it by early February, call Social Security at 1-800-772-1213 to request a copy.