Filing Your Tax Return When SSDI Is Your Only Income

You may still need to file a tax return even if SSDI is your only income

Social Security Disability Insurance (SSDI) payments themselves are not taxed as income by the federal government. However, you must file a tax return if your total income — including SSDI plus any other money you received — crosses the filing threshold set by the IRS each year. The threshold depends on your age and filing status. Even when you are below the threshold, filing can be worth doing because you may be owed a refund from taxes withheld from other sources, or you may may have access to for tax credits like the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit.

The key step is determining whether your income actually requires you to file. This depends on what else you received that year beyond SSDI: wages from work, interest, dividends, self-employment income, or other benefits. SSDI itself does not count toward the filing threshold, but anything else does.

Key Takeaways

SSDI payments are not taxable income, so they do not count toward the IRS filing threshold, but you must include them on your return if you file.
You must file if your non-SSDI income (wages, interest, self-employment, other benefits) exceeds the annual threshold for your age and filing status.
Even if you are below the threshold, filing may get you a refund or tax credits you are owed, such as the Earned Income Tax Credit.
The IRS sends Form SSA-1099 each January showing your SSDI payments for the prior year; use this to verify the amount on your return.
You can file on paper using Form 1040 or electronically through free IRS tools like VITA or IRS Free File if your income is low enough.

Determine whether you must file based on your income threshold

The IRS sets a filing threshold each year based on your age and filing status. For 2024, the threshold is $14,600 for a single person under 65, and $18,150 for a single person 65 or older. These numbers change annually. To know whether you must file, add up all income you received in the tax year except SSDI, then compare it to the threshold that matches your situation.

If you received wages from work, that counts. If you earned money from self-employment or a side business, that counts. If you received interest from a bank account or dividends from investments, that counts. If you received unemployment benefits, workers' compensation, or other government benefits besides SSDI, those count. SSDI does not count toward this total.

If your non-SSDI income is below the threshold, you are not required to file. However, you may still want to file if you had taxes withheld from wages or if you think you may have access to for a refundable tax credit.

Gather your documents before you file

The Social Security Administration sends Form SSA-1099 to you by January 31 each year. This form shows the total SSDI payments you received in the prior calendar year. You will need this form to complete your tax return, even though the SSDI amount itself is not taxable. Keep it with your tax records.

If you worked during the year, your employer will send you a Form W-2 by January 31 showing your wages and any taxes withheld. If you are self-employed, you will need to gather records of all income and expenses to calculate your net profit or loss.

If you received other income — interest, dividends, unemployment, workers' compensation — you will receive forms documenting those amounts (Form 1099-INT for interest, Form 1099-DIV for dividends, Form 1099-G for unemployment, and so on). Collect all of these before you start your return.

File using Form 1040 or an IRS-approved free tool

You have two main paths to file: on paper or electronically. If you file on paper, you will use Form 1040 (the standard individual income tax return) along with any schedules your situation requires. You can read Form 1040 from IRS.gov or request it by phone at 1-800-829-3676. Mail the completed return to the IRS address shown in the form instructions by April 15 (or the next business day if April 15 falls on a weekend or holiday).

If you prefer to file electronically and your income is low, you may be able to use IRS Free File. This is a program where the IRS partners with tax software companies to offer free filing to people whose income is below a certain threshold (for 2024, this is $79,000 for most filers). You can access Free File options at IRS.gov/freefile. You will enter your information into the software, which calculates your tax and files it electronically for you. The IRS typically processes electronic returns faster than paper returns.

Another free option is VITA (Volunteer Income Tax information), a program run by the IRS and community organizations. VITA sites offer free tax preparation by trained volunteers. To find a VITA site near you, visit IRS.gov/vita or call 211 to ask for local tax help.

Report SSDI on your return even though it is not taxed

When you file Form 1040, you will see a line for "Social Security benefits." You must enter your total SSDI for the year here, even though this amount is not taxable. The IRS uses this information to calculate whether any of your benefits become taxable based on your other income (a situation that applies only in specific circumstances involving substantial non-SSDI income combined with certain other factors). For most people receiving only SSDI, this line will show your SSDI total, but your tax will be zero or based only on other income you received.

Use the amount shown on your Form SSA-1099 to fill in this line. Double-check that the amount matches what you expect based on your monthly SSDI payments.

Handle any taxes withheld from wages or other income

If you worked and had federal income tax withheld from your paychecks, that withheld amount will appear on your Form W-2. When you file your return, the IRS compares the tax you owe (based on your total income) to the amount that was already withheld. If more was withheld than you owe, you receive a refund. If less was withheld than you owe, you must pay the difference.

For example, if you earned $8,000 in wages and had $600 withheld, but your actual tax liability is only $400, you would receive a $200 refund. If your tax liability is $700, you would owe $100.

When you file electronically or on paper, the IRS processes this calculation automatically. If you are owed a refund, you can choose to have it deposited directly into your bank account (which is faster) or receive a check by mail.

Claim tax credits you may be owed

Even if you have no tax liability, you may be owed money through refundable tax credits. The Earned Income Tax Credit (EITC) is the most common. If you worked and earned less than a certain amount (for 2024, this ranges from about $17,000 to $63,000 depending on your filing status and number of dependents), you may may have access to for the EITC. The credit can be worth hundreds or thousands of dollars and is refundable, meaning you receive it even if you owe no tax.

The Additional Child Tax Credit is another refundable credit. If you have dependent children and your income is below certain thresholds, you may be owed money through this credit even if you have no tax liability.

To claim these credits, you must file a return. The IRS will not send you the money automatically. When you file using Form 1040 or IRS Free File software, you will answer questions about your income, dependents, and work situation. The software or form will calculate whether you may have access to for these credits.

Frequently Asked Questions

Do I have to report my SSDI on my tax return?

Yes. You must report your total SSDI for the year on Form 1040, line 5a, even though SSDI is not taxable income. Use the amount from your Form SSA-1099. This does not increase your tax; it is informational for the IRS.

What if I earned money from work while on SSDI?

Wages you earned count toward the IRS filing threshold. If your wages plus any other non-SSDI income exceeds the threshold for your age and filing status, you must file. Report your wages on Form 1040 using the W-2 your employer sent you. SSDI itself does not count toward the threshold.

Can I get a refund if I had taxes withheld but owe no tax?

Yes. If your employer withheld federal income tax from your wages but your total tax liability is zero or less than what was withheld, you will receive a refund. File your return to claim it. You can request direct deposit to your bank account for faster processing.

What if I cannot afford to pay a tax preparer?

Use IRS Free File if your income qualifies (below $79,000 for most filers in 2024), or find a VITA site near you by visiting IRS.gov/vita or calling 211. Both offer free tax preparation. You can also file on paper using Form 1040 if you prefer to do it yourself.

When do I need to file by?

The important date is April 15 of the year following the tax year (for example, April 15, 2025 for the 2024 tax year). If April 15 falls on a weekend or holiday, the important date moves to the next business day. If you need more time, you can request an extension by filing Form 4868, though this extends only the filing important date, not the payment important date if you owe tax.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.