You may have to file taxes even though you receive SSDI, depending on your total income and filing status

Social Security Disability Insurance (SSDI) benefits themselves are not taxed. However, if you have other income—wages from work, self-employment earnings, interest, dividends, or rental income—you may be required to file a federal tax return. The IRS does not care that you receive disability benefits. It cares about your total income for the year.

The threshold for filing depends on your age, filing status, and type of income. A single person under 65 must file if their gross income exceeds $13,850 in 2023 (this amount changes yearly). If you are married filing jointly and both spouses are under 65, the threshold is $27,700. These numbers are higher if you are 65 or older, and they shift each January.

The key word is "gross income"—that means income before deductions. SSDI payments do not count toward this total, but almost everything else does. If you earned $8,000 from part-time work and received $15,000 in SSDI, you would count only the $8,000 against the filing threshold.

Key Takeaways

  • SSDI benefits themselves are never taxed and do not count toward the income threshold for filing.
  • You must file if your income from other sources (wages, self-employment, interest, rental income) exceeds the annual threshold for your age and filing status.
  • The filing threshold for 2023 is $13,850 for single filers under 65 and $27,700 for married couples filing jointly, both under 65; these amounts increase each year.
  • Even if you do not owe tax, filing may be worth doing if you earned income and had taxes withheld, because you could receive a refund.
  • If you work and receive SSDI, you must also track your earnings for the Social Security Administration, which has separate rules about how much you can earn without losing benefits.

When you have earned income alongside SSDI

If you worked during the year—whether as an employee or self-employed—you almost certainly must file. Employers withhold federal income tax from paychecks, and the IRS expects you to file a return to account for those withholdings. Even if you owed zero tax, filing gets you a refund of the money that was taken out.

Self-employment income has its own rules. If you earned $400 or more from self-employment in a year, you must file a tax return to report that income and pay self-employment tax (Social Security and Medicare tax on your own earnings). This is true regardless of your age or filing status. The $400 threshold is separate from the general filing thresholds mentioned above.

Keep in mind that work and SSDI are not mutually exclusive. The Social Security Administration allows you to work and receive benefits under certain conditions, particularly through work incentive programs like Impairment Related Work Expenses (IRWE) or Plans to Achieve Self-Support (PASS). However, earning above the annual earnings limit can reduce or suspend your benefits. That is a separate calculation from whether you must file taxes.

Income sources other than wages

You may have income that is not from work. Interest from a savings account, dividends from investments, rental income from property, or income from a side business all count toward the filing threshold. If your total from all these sources plus any wages exceeds the threshold for your situation, you must file.

Some types of income are not taxable—for example, gifts, inheritances, and certain state disability benefits. But if you are unsure whether something counts as income, the safest approach is to include it in your calculation. The IRS publication 17 (Your Federal Income Tax) lists what counts and what does not.

What happens if you do not file when you should

If you owe tax and do not file, the IRS will eventually contact you. Penalties and interest accrue on unpaid tax, and the longer you wait, the more you owe. The IRS can also offset your refunds from future years to pay back taxes.

If you do not owe tax but had taxes withheld from paychecks, you will straightforward not receive your refund. There is no penalty for not filing if you do not owe, but you lose money by not claiming what was taken from you. The IRS allows you to file a return up to three years after the original due date to claim a refund.

Additionally, some benefit programs—such as Supplemental Security Income (SSI), Medicaid, or housing information—may require you to report your income or file a tax return as part of their own rules. Check with your state or local programs to see if they have separate filing requirements.

How to determine your filing requirement

Start by adding up all your income for the year. Include wages (from a W-2), self-employment income (from a 1099 or your own records), interest, dividends, rental income, and any other taxable income. Do not include SSDI, SSI, or other non-taxable benefits.

Compare your total to the filing threshold for your age and filing status. If you are under 65 and single, use $13,850 (for 2023). If you are married filing jointly and both under 65, use $27,700. If either spouse is 65 or older, the threshold is higher—$28,750 for married filing jointly with one spouse 65 or older, and $29,800 if both are 65 or older. These thresholds increase each year; check the IRS website for the current year's amounts.

If your income is below the threshold and you had no taxes withheld, you do not have to file. If your income is at or above the threshold, or if you had taxes withheld, you should file to report your income and claim any refund due.

Special situations: married couples and dependents

If you are married, you can file jointly or separately. Filing jointly usually results in a lower tax bill, but in some cases filing separately is better—for example, if one spouse has very high medical expenses. The filing thresholds are different for each option, so consider both before deciding.

If you have dependents (children or other relatives you support), you may be able to claim tax credits such as the Child Tax Credit or the Earned Income Tax Credit (EITC). These credits can reduce your tax bill or result in a refund even if you owe no tax. If you earned income and have dependents, filing is almost always worth doing.

Reporting your SSDI to other programs

While SSDI is not taxable income for the IRS, it may count as income for other programs. Medicaid, housing information, and some state benefits use your SSDI amount when calculating your income for their own purposes. If you file a tax return, you may also need to report your SSDI to these programs—not because it is taxable, but because they have their own income limits.

Keep your Social Security benefit statement (which you can view on your my Social Security account) handy when you explore for other benefits. It shows your annual SSDI amount and is often required as proof of income.

Frequently Asked Questions

Do I have to file taxes if I only received SSDI and no other income?

No. SSDI benefits are not taxable, and if SSDI is your only income, you have no filing requirement. You do not need to report SSDI on a federal tax return.

What if I earned money from work but it was less than the filing threshold?

You do not have to file if your earned income is below the threshold for your age and filing status. However, if your employer withheld federal income tax from your paychecks, filing will get you a refund of that money.

Does working while on SSDI affect my taxes differently?

No. Your tax filing requirement is based on your total income, not on whether you receive SSDI. However, your earnings may affect your SSDI benefits under Social Security's work incentive rules—that is separate from your tax obligation.

Can I claim the Earned Income Tax Credit if I receive SSDI?

Yes, if you earned income during the year and meet the EITC income and other requirements. SSDI does not disqualify you. The EITC can result in a refund even if you owe no tax, so it is worth checking whether you may have access to.

What if I am not sure whether I have to file?

Use the IRS Interactive Tax Assistant tool on irs.gov, which walks you through questions about your income and filing status. You can also call the IRS at 1-800-829-1040 or visit a free tax preparation site in your area through the IRS Free File program.