Whether You Must File Taxes on SSDI Depends on Your Total Income

Social Security Disability Insurance (SSDI) benefits themselves are not taxable income. However, you may have to file a federal tax return if your total income—including SSDI plus wages, self-employment income, interest, dividends, or other sources—exceeds the IRS threshold for your filing status. The threshold changes each year and depends on your age and whether you are married filing jointly or single.

The IRS does not count SSDI as income when calculating whether you must file. But if you have other income sources, those count in full. For example, if you receive $15,000 in SSDI and $8,000 in part-time wages, only the $8,000 counts toward the filing threshold. If that $8,000 alone exceeds your threshold, you must file.

Even if you are not required to file, you may want to file anyway if you had taxes withheld from wages or if you are may have access to to a refundable tax credit like the Earned Income Tax Credit (EITC). Filing can result in a refund of money the IRS owes you.

Key Takeaways

  • SSDI benefits are not counted as taxable income, so they do not push you over the filing threshold by themselves.
  • You must file if your non-SSDI income (wages, self-employment, interest, dividends) exceeds the IRS threshold for your age and filing status in that tax year.
  • The IRS filing threshold for 2024 is $14,600 for single filers under 65 and $29,200 for married couples filing jointly under 65, but these amounts change yearly.
  • Even if you do not have to file, you should file if you had taxes withheld or if you may be may have access to to a refundable credit.

How to Find Your Filing Threshold for the Current Year

The IRS publishes filing thresholds each January on its website (irs.gov). The threshold depends on three things: your age, your filing status, and the tax year. A single person under 65 has a lower threshold than a single person 65 or older. A married couple filing jointly has a higher threshold than a single filer.

To find your threshold, go to irs.gov and search for "filing requirements" or "do I need to file." The IRS provides a table that shows the threshold for each combination of age and filing status. Write down the number that matches your situation. Then add up all your income sources except SSDI. If that total is more than your threshold, you must file.

If you are unsure whether a particular income counts, the IRS worksheet on that same page lists what does and does not count. Wages from a job count. Interest from a savings account counts. SSDI does not count. Self-employment income counts in full.

What Happens If Part of Your SSDI Becomes Taxable

In rare cases, a portion of your SSDI can become taxable. This occurs only if your "combined income" exceeds a specific threshold set by the IRS. Combined income is calculated as your adjusted gross income plus nontaxable interest plus half of your SSDI benefits. If this combined total exceeds $25,000 (single) or $32,000 (married filing jointly), up to 85 percent of your SSDI may be taxable.

This rule applies only to people with substantial other income—typically those still working or with significant investment income. Most SSDI recipients do not reach these thresholds and never have taxable SSDI. If you do reach the threshold, the Social Security Administration will send you a form SSA-1099 showing how much of your benefit is taxable, and you will report that amount on your tax return.

You can request that Social Security withhold federal income tax from your SSDI payments if you expect to owe tax. This prevents a large bill at tax time. Call Social Security at 1-800-772-1213 or visit your local Social Security office to set up withholding.

Income Sources That Count Toward Your Filing Threshold

When you add up your income to compare against the filing threshold, include all of these sources: wages from employment, net self-employment income, interest from savings or investment accounts, dividends, capital gains, rental income, and income from pensions or annuities. Do not include SSDI, Supplemental Security Income (SSI), or most veterans' benefits.

If you are self-employed, you must report all business income, even if it is small. Self-employment income counts toward the filing threshold and may also require you to file a Schedule C (Profit or Loss from Business) and pay self-employment tax, which is separate from income tax.

If you received a 1099 form from an employer, bank, or investment firm, that income definitely counts. If you are unsure whether something is income, the IRS Publication 17 (Your Federal Income Tax) lists every type of income and whether it is taxable. You can read it free from irs.gov.

Filing Your Return When You Receive SSDI

File your tax return the same way anyone else does. You will need your Social Security number, your SSDI benefit statement (which Social Security sends each January), and documentation of all other income (W-2 forms from employers, 1099 forms from banks or other payers, and records of self-employment income). You do not need to report SSDI on your return unless part of it is taxable under the combined income rule described above.

You can file online using free IRS software (irs.gov/freefile), by mail using a paper form, or with the help of a tax preparer. If your income is low, you may be may have access to to free tax preparation through the Volunteer Income Tax information (VITA) program, which operates at libraries, community centers, and nonprofits nationwide. Call 211 or visit irs.gov to find a VITA site near you.

File by April 15 of the year following the tax year you are reporting. If you cannot file by that date, you can request an extension, but an extension to file is not an extension to pay. Any tax you owe is still due on April 15, even if you file the return later.

What to Do If You Owe Taxes on Other Income

If you file a return and owe income tax, you can pay in full by the April 15 important date, or you can set up a payment plan with the IRS. The IRS allows installment agreements for amounts you cannot pay when ready. You can set up a plan online at irs.gov, by phone at 1-800-829-1040, or by mail.

If you cannot pay and have limited income, you may be able to request Currently Not Collectible status, which temporarily pauses collection while you work on your finances. This does not erase the debt, but it stops penalties and interest from accruing for a time. Contact the IRS or a tax professional to explore this option.

Do not ignore a tax bill. The IRS can garnish wages, place a lien on property, or offset tax refunds. If you receive a notice from the IRS, respond within the important date stated on the notice. If you need help, contact a Low Income Taxpayer Clinic (LITC), which provides free representation to people with limited income. Find one at irs.gov/litc.

Frequently Asked Questions

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

No. SSDI alone does not count as taxable income, so if SSDI is your only income source, you do not have to file a federal tax return. However, if you had taxes withheld from other income during the year or if you are may have access to to a refundable credit, filing may result in a refund.

What if I work part-time while receiving SSDI?

Your wages count toward the filing threshold, not your SSDI. If your wages alone exceed the threshold for your age and filing status, you must file. You also need to report your wages to Social Security because they may affect your SSDI payment amount under the Substantial Gainful Activity (SGA) rules, but that is a separate process from tax filing.

Will filing taxes affect my SSDI benefits?

Filing a tax return does not change your SSDI payment. However, earning wages while on SSDI can affect your benefit if your earnings exceed the SGA threshold. That is determined by Social Security, not by the IRS. Report your work to Social Security separately from filing taxes.

What is form SSA-1099 and when do I get it?

Form SSA-1099 shows the total SSDI you received in the previous year and how much, if any, is taxable. Social Security mails it in January. You use it to complete your tax return. If you did not receive one, call Social Security at 1-800-772-1213 to request a copy or to verify your address.

Can I get help filing taxes if I cannot afford a tax preparer?

Yes. The IRS Volunteer Income Tax information (VITA) program offers free tax preparation at libraries, community centers, and nonprofits. Call 211 or visit irs.gov to find a VITA site near you. Low Income Taxpayer Clinics (LITCs) also provide free help with tax issues and representation if you are in a dispute with the IRS.