You may have to file taxes on your SSDI benefits, even though you did not earn them as wages

Whether you owe federal income tax on your SSDI depends on your total income for the year — not just your SSDI payments, but also any wages, interest, or other money you received. The Social Security Administration sends you a form called SSA-1099 each January that reports how much SSDI you got. You use that number along with your other income to figure out if you have a tax filing requirement.

The threshold changes based on your filing status and whether you have other income. A single person with only SSDI income typically does not file taxes. But if you also earned wages, received unemployment, or had other income, you may cross the threshold and owe taxes. The IRS has a worksheet to help you calculate this, and you can also call the IRS or work with a tax preparer to find out for certain.

SSDI itself is not taxed like wages are. However, the IRS counts it as income when deciding whether your total income is high enough to require a tax return. This is different from how some other benefits work, so it catches people off guard.

Key Takeaways

  • The Social Security Administration sends you an SSA-1099 form each January showing your SSDI income for the previous year.
  • You must file taxes if your total income (SSDI plus wages, interest, and other sources) exceeds the threshold for your filing status, which varies year to year.
  • SSDI itself is not taxed as income, but it counts toward your total income when the IRS decides whether you have a filing requirement.
  • If you have both SSDI and earned income, you almost always have to file, even if your total is low.
  • The IRS worksheet for determining your filing requirement is free, and you can also call the IRS or use a free tax preparation service.

Understanding the SSA-1099 form you receive in January

Each January, the Social Security Administration mails you an SSA-1099 to the address on file. This form shows the total amount of SSDI you received in the previous calendar year. Box 3 on the form contains the number you need. Keep this form — you will reference it when you file your taxes or when you talk to a tax preparer.

If you did not receive an SSA-1099 by early February, contact Social Security directly. You can call 1-800-772-1213 or visit your local Social Security office. Have your Social Security number ready. If you moved during the year, the form may have gone to an old address, so update your address with Social Security as soon as you can.

The SSA-1099 is not the same as a W-2 (which reports wages) or a 1099-INT (which reports interest income). It is specific to Social Security benefits. When you file your taxes, you will report the amount from your SSA-1099 along with any other income you had.

Calculating whether you have to file taxes

The IRS sets a threshold each year. If your total income is below that threshold, you do not have to file. If it is at or above the threshold, you do. The threshold depends on your age, filing status, and whether you have earned income (wages from a job).

For 2024, a single person under 65 with only SSDI income does not have to file unless their total income was $14,600 or more. But this number changes every year, and it is higher if you are 65 or older. If you have both SSDI and wages, the threshold is lower — usually around $1,150 in earned income triggers a filing requirement, regardless of your SSDI amount.

The IRS publishes a worksheet each year to help you figure this out. You can find it on IRS.gov, or you can call the IRS at 1-800-829-1040 and ask them to walk you through it. Many people find it easier to call than to do the math themselves, and the IRS is set up to answer this question.

What happens if you do not file when you should have

If you had a filing requirement and did not file, the IRS may send you a notice. This does not automatically mean you owe money — it means they want to verify your income. You can respond to the notice by filing the return you should have filed, even if it is late.

Filing late does not usually result in a penalty if you did not owe any tax. However, if you owed tax and did not pay it, penalties and interest accrue. The sooner you file, the sooner you resolve the matter. If you receive an IRS notice, do not ignore it — respond within the timeframe the notice gives you.

If you are unsure whether you had a filing requirement in a past year, you can file an amended return for that year. The IRS allows you to go back and correct your records. A tax preparer or the IRS can help you figure out which years need attention.

Filing your taxes with SSDI income

When you file, you will report your SSDI income on your tax return. The specific line depends on which form you use. If you file Form 1040 (the standard individual tax return), you report SSDI on line 5b. If you use tax software, it will prompt you to enter the amount from your SSA-1099.

You will also report any other income you had — wages on line 1a, interest on line 2b, and so on. The tax software or a tax preparer will add everything up and calculate whether you owe tax. In most cases, if your only income is SSDI, you will not owe anything. If you also had wages, you may owe tax on the wages, depending on how much you earned.

Many people with SSDI income can file for free. The IRS offers free tax preparation through VITA (Volunteer Income Tax information) sites in most communities. You can find a VITA site near you at IRS.gov. Some tax software companies also offer free filing for people below a certain income level. Ask before you pay.

Reporting other income alongside your SSDI

If you worked part-time or had other income during the year, you report that separately from your SSDI. Wages go on line 1a of your Form 1040. Interest from a savings account goes on line 2b. Rental income, self-employment income, and other sources each have their own lines.

The presence of other income can change your tax situation significantly. Even a small amount of wages can push you over the filing threshold. If you earned $1,200 and received $12,000 in SSDI, your total income is $13,200, which may be below the threshold for a single person under 65 — but you still have to check the current year's threshold to be sure.

If you are self-employed or had gig work (like freelancing or driving for a rideshare service), you may owe self-employment tax in addition to income tax. This is separate from your SSDI. A tax preparer can help you figure out what you owe on self-employment income.

Using free tax preparation services

You do not have to pay to file your taxes. The IRS funds free tax preparation through VITA sites, which are staffed by trained volunteers. These sites serve people with low to moderate income, including people receiving SSDI. You bring your SSA-1099, any W-2s or other income documents, and your Social Security number. The volunteer prepares your return and files it electronically for you.

To find a VITA site, go to IRS.gov and search for "VITA locator" or call 211 and ask for tax preparation services in your area. VITA sites operate during tax season, usually from January through April. Some sites stay open longer. Call ahead to confirm hours and whether you need an appointment.

If you prefer to file online, several tax software companies offer free filing for people below a certain income threshold. TurboTax, H&R Block, and TaxAct all participate in the IRS Free File program. You can access these through IRS.gov. The software walks you through the process step by step and files your return electronically.

Frequently Asked Questions

Do I have to pay taxes on my SSDI benefits?

SSDI itself is not taxed. However, if your total income (SSDI plus wages, interest, and other sources) exceeds the IRS threshold for your filing status, you have to file a tax return. Whether you actually owe tax depends on your total income and deductions, not just your SSDI.

What if I lost my SSA-1099 form?

Call Social Security at 1-800-772-1213 and request a replacement. You can also visit your local Social Security office in person. Have your Social Security number ready. Social Security can mail you a duplicate or provide the information over the phone.

Can I file my taxes online if I receive SSDI?

Yes. You can use free tax software through the IRS Free File program, visit a VITA site for free in-person help, or hire a tax preparer. The method does not matter — what matters is that you report your SSA-1099 income accurately on your return.

What if I owed taxes in a previous year and did not file?

You can file an amended return for that year. The IRS allows you to correct past returns. If you owed tax and did not pay, penalties and interest will have accrued, but filing now stops further penalties. A tax preparer or the IRS can help you determine what you owe.

Do I need to report SSDI income if I am claimed as a dependent?

Yes. Even if someone else claims you as a dependent on their return, you still report your own income on your own return if you meet the filing threshold. Your SSDI counts toward your income for this purpose. A tax preparer can help you sort out how this affects both returns.