Whether you must file taxes on SSDI depends on your total income and filing status

The Social Security Administration does not withhold federal income tax from SSDI payments automatically. You are responsible for determining whether your income crosses the threshold that requires you to file. The IRS threshold depends on your age, filing status, and whether you have non-SSDI income like wages, interest, or other benefits.

If you are under 65 and single, you must file if your gross income exceeds $13,850 for 2023 (the threshold rises slightly each year). If you are 65 or older and single, the threshold is $15,450. These thresholds include SSDI payments plus any other income. If you are married filing jointly, the thresholds are higher and depend on whether both spouses are 65 or older.

Even if you fall below the filing threshold, you may want to file anyway — particularly if you had taxes withheld from wages during the year, because filing allows you to claim a refund. You can also claim the Earned Income Tax Credit (EITC) only by filing a return, even if you have no tax liability.

Key Takeaways

  • SSDI payments count as income for tax purposes, but most people who receive only SSDI do not owe federal income tax because the threshold is high.
  • You must add your SSDI payments to all other income (wages, interest, rental income) to determine whether you cross the filing threshold for your age and status.
  • The IRS provides a worksheet to calculate how much of your SSDI is taxable; most recipients find that little or none of it is.
  • File Form 1040 or 1040-SR with Schedule 1 if you have SSDI income; use the Social Security Benefit Worksheet in the instructions to calculate the taxable portion.
  • If you cannot afford a tax preparer, the IRS Volunteer Income Tax information (VITA) program offers free filing at local sites, and many accept SSDI recipients.

How SSDI income is counted for tax purposes

SSDI is treated differently from other income on your tax return. The IRS does not tax the full amount of your SSDI payment. Instead, it uses a formula to determine how much, if any, of your benefit is taxable. This formula depends on your "combined income," which is your adjusted gross income plus nontaxable interest plus half of your SSDI benefits.

If your combined income is below $25,000 (single) or $32,000 (married filing jointly), none of your SSDI is taxable. If your combined income exceeds those thresholds, up to 50 percent of your benefits may be taxable, and in some cases up to 85 percent. The exact calculation is complex, which is why the IRS publishes the Social Security Benefit Worksheet in the instructions to Form 1040 and Form 1040-SR.

The worksheet walks you through the calculation step by step. You will need your SSDI statement (Form SSA-1099), which the Social Security Administration mails to you by January 31 each year, showing the total benefits you received in the previous year.

Obtaining your Social Security Benefit Statement (Form SSA-1099)

The Social Security Administration sends Form SSA-1099 to every SSDI recipient by January 31. This form shows the total SSDI benefits you received during the previous calendar year. You need this form to complete your tax return accurately.

If you do not receive your SSA-1099 by early February, you can request a replacement copy online through your my Social Security account at ssa.gov, or by calling the Social Security Administration at 1-800-772-1213. You can also visit your local Social Security office in person. Have your Social Security number ready.

If you file your taxes before your SSA-1099 arrives, you can file using the benefit amount shown in your Social Security account online, or you can file an amended return (Form 1040-X) once you receive the official form and verify the amount.

Completing the Social Security Benefit Worksheet

The Social Security Benefit Worksheet appears in the instructions to Form 1040 or Form 1040-SR (the version for filers 65 and older). The worksheet has two parts: Part I determines whether any of your benefits are taxable, and Part II calculates the exact amount.

Start by gathering your documents: your SSA-1099, any 1099 forms for wages or interest income, and records of any nontaxable interest (such as municipal bond interest). Enter your adjusted gross income on the first line of the worksheet. Then add half of your SSDI benefits and any nontaxable interest. This sum is your "combined income."

Compare your combined income to the thresholds ($25,000 for single filers, $32,000 for married filing jointly). If you are below the threshold, stop — none of your SSDI is taxable. If you are above it, continue to Part II, which uses a formula to calculate the taxable portion. The calculation is mechanical but requires careful arithmetic; many people use tax software or a preparer to avoid errors.

Filing your return with SSDI income

File Form 1040 or Form 1040-SR (if you are 65 or older) with Schedule 1 attached. On Form 1040, line 5b asks for taxable Social Security benefits. This is where you enter the amount calculated on the Social Security Benefit Worksheet — not the full amount from your SSA-1099.

If you use tax software (such as TurboTax, H&R Block, or TaxAct), the software will walk you through the Social Security Benefit Worksheet automatically. You enter your SSA-1099 amount, and the software calculates the taxable portion. If you file by hand, you must complete the worksheet yourself and enter the result on line 5b.

File your return by the April 15 important date (or the next business day if April 15 falls on a weekend). You can file electronically, which is faster and more accurate, or by mail. The IRS accepts electronic returns from SSDI recipients without restriction.

Free tax filing resources for SSDI recipients

If you cannot afford to pay a tax preparer, the IRS Volunteer Income Tax information (VITA) program offers free tax preparation at thousands of locations nationwide. VITA sites are staffed by trained volunteers and accept returns from people with income below a certain threshold (currently around $60,000 for most filers). Many VITA sites specifically serve seniors and people with disabilities.

To find a VITA site near you, visit the IRS website at irs.gov and search for "VITA locator," or call 211 and ask for tax preparation services in your area. Some sites offer in-person appointments, while others offer virtual preparation by phone or video. Call ahead to confirm hours and whether you need an appointment.

The IRS also offers free tax software through its Free File program. If your income is below the threshold (varies by software provider but typically around $73,000), you can read and use tax software at no cost. Visit irs.gov/freefile to see which providers participate and whether you meet the income limit.

What to do if you owe taxes on SSDI income

If your tax calculation shows that you owe federal income tax, you have several payment options. You can pay online through the IRS website (irs.gov/payments), by mail with a check or money order, or by phone using the IRS payment line. You can also set up a payment plan if you cannot pay the full amount at once.

If you expect to owe taxes in future years because of your SSDI income, you can request that the Social Security Administration withhold federal income tax from your SSDI payments. File Form W-4V (Voluntary Withholding Request) with your local Social Security office or mail it to the address on the form. You can choose to have 7, 10, 15, or 25 percent of your benefit withheld each month.

Withholding is optional and does not change the amount of SSDI you receive — it straightforward sets aside part of your payment for taxes. Many people find this helpful because it spreads the tax burden across the year rather than facing a large bill at tax time.

Frequently Asked Questions

Do I have to report SSDI on my taxes if I do not owe any tax?

No. If your combined income is below the filing threshold for your age and status, you do not have to file a return. However, if you had taxes withheld from wages or other income during the year, you should file to claim a refund. You must also file if you want to claim the Earned Income Tax Credit.

What if I also receive SSI (Supplemental Security Income)?

SSI is not taxable income and does not count toward your filing threshold. Only SSDI counts. If you receive both SSDI and SSI, use only the SSDI amount from your SSA-1099 on the Social Security Benefit Worksheet.

Can I file my taxes before I receive my SSA-1099?

Yes. You can file using the SSDI amount shown in your my Social Security account online, or you can wait for the official form. If the amount on your SSA-1099 differs from what you reported, file Form 1040-X (Amended U.S. Individual Income Tax Return) to correct it.

What if I worked part-time and also received SSDI?

Add your wages and your SSDI to calculate your combined income. Your wages count in full; your SSDI is taxable only if your combined income exceeds the threshold. Use the Social Security Benefit Worksheet to determine the taxable portion of your SSDI.

Do I need to file state income taxes on SSDI?

State tax rules vary. Some states do not tax SSDI at all; others tax it the same way the federal government does. Check your state's tax agency website or call to learn the rules in your state. A VITA volunteer can also help you determine your state filing requirement.