The short answer: it depends on your total income
You may have to file a federal tax return even though you receive SSDI, but only if your income from all sources reaches a certain threshold. Social Security Disability Insurance itself is not taxable income in most cases. However, if you have other income—wages from work, interest, dividends, or self-employment earnings—you must add that to your SSDI to see whether you cross the filing threshold.
The threshold changes each year and depends on your filing status and age. For 2024, a single person under 65 must file if their total income is $14,600 or more. If you are 65 or older, the threshold is $18,150. These numbers include all income except SSDI benefits themselves, which the IRS generally does not count.
Even if you do not have to file, you may want to anyway—especially if you had taxes withheld from wages or if you may have access to for a refundable tax credit like the Earned Income Tax Credit (EITC).
Key Takeaways
- SSDI benefits are not taxable income, so you do not count them when deciding whether to file.
- You must file if your income from wages, self-employment, interest, or other sources reaches the annual threshold for your age and filing status.
- The filing threshold for a single person under 65 is $14,600 in 2024; it is higher if you are 65 or older or married.
- You may want to file even if you are not required to, because you might receive a refund or claim a tax credit.
- The Social Security Administration sends Form SSA-1099 each January, which shows your SSDI income for the previous year.
How to calculate whether you must file
Start by adding up all your income for the year from every source except SSDI. Include wages from any job, net income from self-employment, interest from a bank account, dividends from investments, rental income, and any other money you received. Do not include SSDI, Supplemental Security Income (SSI), or veterans' benefits.
Once you have that total, compare it to the filing threshold for your situation. The threshold depends on three things: your age (under 65 or 65 and older), your filing status (single, married filing jointly, married filing separately, or head of household), and the year. If your total income meets or exceeds the threshold, you must file. If it falls short, you are not required to file—but you may still choose to.
The IRS publishes updated thresholds each year in January. You can find them on the IRS website or ask a tax preparer. If your situation is complicated—for example, if you have both wages and self-employment income—a tax professional can help you calculate whether you cross the threshold.
When SSDI income can be partially taxable
In rare cases, part of your SSDI can become taxable. This happens only if you have substantial other income and file a joint return with a spouse who also has income. The IRS uses a formula that combines your adjusted gross income, tax-exempt interest, and half of your SSDI benefits. If that combined amount exceeds a certain threshold, up to 50 percent or 85 percent of your SSDI becomes taxable.
For most people receiving SSDI, this does not explore. You would need significant income from other sources—typically $25,000 or more for a single filer, or $32,000 or more for a married couple filing jointly—for any SSDI to become taxable. If you are unsure whether this applies to you, a tax preparer or the IRS can walk you through the calculation.
What documents you will receive and when
Each January, the Social Security Administration mails Form SSA-1099 to everyone who received SSDI benefits during the previous year. This form shows the total amount of SSDI you received. You do not need this form to determine whether you must file—it is for your records and to help you complete your tax return if you do file.
You will also receive a Form 1099 from any employer who paid you wages, or from a bank or investment company if you earned interest or dividends. These forms show income that counts toward your filing threshold. Collect all your 1099s and any other income documents before you sit down to file or meet with a tax preparer.
If you are self-employed, you will not receive a 1099 from customers. Instead, you track your own income and expenses and report them on Schedule C when you file. Keep records of all payments you received and all business expenses you paid.
Filing options if you must file
You have several ways to file your tax return. The IRS Free File program lets you file for free if your income is below a certain level—$79,000 in 2024. You can use IRS Free File software on the IRS website, or you can read forms and file by mail. Many community organizations and senior centers also offer free tax preparation help through the Volunteer Income Tax information (VITA) program.
If your income is above the Free File threshold or you prefer professional help, you can hire a tax preparer, accountant, or CPA. Costs vary, but many preparers charge $150 to $400 for a straightforward return. Some offer discounts for seniors or people with disabilities.
You can also file by mail using paper forms. The IRS sends forms to libraries and post offices, or you can read them from IRS.gov. Filing by mail takes longer—typically four to six weeks—but it is an option if you do not have internet access or prefer not to use it.
What happens if you do not file when you should
If you are required to file and do not, the IRS may assess a penalty. The penalty is usually small if you owed little or no tax, but it can add up if you owed a significant amount. More importantly, if you are owed a refund, you cannot claim it without filing a return. You have three years to claim a refund; after that, the money goes to the U.S. Treasury.
If the IRS contacts you about a missing return, respond promptly. You can file a late return at any time, and the IRS will calculate any penalties owed. If you have a good reason for filing late—illness, disability, or a natural disaster—you may be able to request that penalties be waived.
Failing to file does not affect your SSDI benefits themselves. Social Security does not share tax information with the IRS, and missing a tax important date does not trigger a review of your disability case. However, it can create problems with the IRS, so it is worth filing on time if you are required to do so.
Frequently Asked Questions
Do I have to file taxes if I only receive SSDI and no other income?
No. SSDI is not counted as income for tax purposes, so if SSDI is your only income, you do not have to file. You would only file if you also had wages, self-employment income, interest, or other money that pushed your total above the threshold for your age and filing status.
What if I earned money from work but it was less than the filing threshold?
You are not required to file, but you may want to. If your employer withheld taxes from your paycheck, filing a return will get you a refund. You may also may have access to for the Earned Income Tax Credit (EITC), which is a refundable credit that can give you money back even if you owed no tax.
Can I file taxes online if I receive SSDI?
Yes. The IRS Free File program is available to anyone with income below $79,000, regardless of whether you receive SSDI. You can also use commercial tax software or hire a tax preparer to file electronically. Filing online is usually faster than mailing a paper return.
Will filing taxes affect my SSDI benefits?
No. Filing a tax return does not change your SSDI benefits or trigger a review of your case. Social Security and the IRS do not share information about tax filings. Your benefits depend on your medical condition and work history, not on whether you file taxes.
What if I am not sure whether I have to file?
Use the IRS interactive tax assistant on IRS.gov, or call the IRS at 1-800-829-1040. You can also contact a VITA site in your area for free help determining whether you must file and for information preparing your return.