File your taxes the same way as anyone else, but report your SSDI benefits on a separate line

You file taxes on SSDI using the standard IRS forms and process. The main difference is that you must report your SSDI income separately from wages or other earnings. Most people with SSDI pay no federal income tax on their benefits themselves, but you still file a return if your total income crosses certain thresholds — and filing can actually put money back in your pocket through the Earned Income Tax Credit (EITC) if you have work income.

The IRS does not automatically know about your SSDI. Social Security sends you a form SSA-1099 each January showing what you received in the prior year. You bring that number into your tax return. Whether you owe tax depends on your total income from all sources, not just SSDI.

Key Takeaways

  • You receive a form SSA-1099 from Social Security by January 31 each year, showing your total SSDI benefits for the prior year — bring this to your tax preparer or use it to file online.
  • Most people on SSDI alone pay no federal income tax, but you must still file a return if your total income (SSDI plus wages, interest, or other sources) exceeds the filing threshold for your age and filing status.
  • If you work and earn wages while on SSDI, you may owe tax on the wages, but the EITC can reduce or eliminate that tax and may send you a refund.
  • SSDI is not subject to self-employment tax, and you do not pay Medicare tax on SSDI benefits, even if you work.
  • Filing a return even when you owe no tax can result in a refund if you had taxes withheld from wages or if you meet EITC income limits.

When you must file a return with SSDI income

The IRS sets a filing threshold — the income level at which you must file — based on your age and filing status. For 2024, a single person under 65 must file if their gross income is $14,600 or more. If you are 65 or older, the threshold is $18,350. These numbers change each year, and the IRS publishes updated thresholds in January.

Your gross income includes SSDI benefits plus all other income: wages from work, interest from a bank account, rental income, or other sources. If your SSDI alone is below the threshold and you have no other income, you do not have to file. But if you work part-time or have any other income, add it all together. If the total is above the threshold for your situation, you must file.

Even if you are not required to file, you should file if you had taxes withheld from paychecks or if you think you might owe the EITC. Filing can result in a refund that you would otherwise lose.

How to report SSDI on your tax return

SSDI benefits go on Form 1040, the main individual income tax return. You will see a line for "Social Security benefits." This is where you enter the amount from your SSA-1099 form. The form shows your gross SSDI for the year; you do not subtract anything before entering it.

The IRS then runs a calculation to determine how much of your SSDI is taxable. For most people on SSDI alone, the result is zero — none of your benefits are taxed. But if you have other income, some of your SSDI may become taxable. This happens when your "combined income" (half your SSDI plus all other income) exceeds $25,000 if you file single, or $32,000 if you file married filing jointly. The calculation is complex, and a tax preparer or tax software will handle it automatically.

You do not need to do anything special to report SSDI. You straightforward enter the number from your SSA-1099, and the form takes care of the rest.

SSDI and the Earned Income Tax Credit

If you work while on SSDI, you may be able to claim the Earned Income Tax Credit (EITC). The EITC is a refundable tax credit for people with low to moderate earned income — meaning if the credit is larger than the tax you owe, the IRS sends you the difference as a refund. You do not have to owe tax to receive it.

For 2024, a single person with no children can claim the EITC if their earned income and adjusted gross income are each less than about $16,810. The credit is worth up to $600. If you have children, the income limits and credit amounts are higher. SSDI benefits do not count as earned income for the EITC, so only your wages matter for this calculation.

Many people on SSDI who work part-time do not realize they may have access to for the EITC. If you earned any wages in the year, ask a tax preparer or use free tax software to check. The IRS also offers free filing through its Free File program if your income is below a certain level.

Taxes on work income while receiving SSDI

If you earn wages while on SSDI, you owe federal income tax on those wages just as anyone else does. Your employer withholds tax from your paychecks based on the W-4 form you complete. You report the wages on your Form 1040 using the W-2 form your employer sends you.

The fact that you are on SSDI does not change how wage tax works. However, SSDI benefits themselves are not subject to income tax withholding — Social Security does not take tax out of your monthly check. This means you may owe tax at the end of the year if you earned enough in wages, or you may get a refund if too much was withheld.

You do not pay self-employment tax on SSDI. If you have self-employment income (from a business or gig work), you owe self-employment tax on that income, but not on your SSDI. Self-employment tax covers Social Security and Medicare for self-employed people. You calculate it on Schedule SE and report it on your Form 1040.

Medicare tax and SSDI

SSDI benefits are not subject to Medicare tax. If you work and earn wages, your employer withholds Medicare tax (1.45% of wages) from your paychecks, and you pay an additional 1.45%. But this tax applies only to your wages, not to your SSDI.

If you are self-employed, you pay self-employment tax, which includes a Medicare component. Again, this applies only to your self-employment income, not to SSDI. You do not owe any tax on the SSDI itself.

Once you turn 65, you become may be able to access for Medicare automatically. SSDI does not trigger Medicare tax, and receiving Medicare does not change your tax filing requirements. You still report income and file as usual.

Getting your SSA-1099 and filing your return

Social Security mails your SSA-1099 by January 31 each year. It shows your total SSDI benefits for the prior calendar year. If you do not receive it by early February, you can request a replacement by calling Social Security at 1-800-772-1213 or visiting your local Social Security office.

You can file your return using tax software (many offer free versions), by mail, or with a tax preparer. If your income is below a certain level, the IRS Free File program offers free tax software from approved providers. You can also find free tax help through VITA (Volunteer Income Tax information) sites in your area, which serve people with low to moderate income.

File your return by April 15 (or the next business day if April 15 falls on a weekend). If you cannot file by then, you can request an extension, but an extension to file is not an extension to pay. If you owe tax, pay as much as you can by April 15 to avoid penalties and interest.

What happens if you do not file when you should

If you are required to file and do not, the IRS may assess a failure-to-file penalty. The penalty is usually 5% of the unpaid tax for each month you are late, up to 25%. However, if you are owed a refund, there is no penalty for filing late — you straightforward lose the refund if you wait too long. The IRS keeps refunds for three years, then returns them to the Treasury.

If you realize you did not file in a prior year, you can still file. There is no time limit on filing a return if you are owed a refund. If you owe tax, file as soon as possible to minimize penalties. The IRS can also file a return on your behalf if you do not, but that return will not include deductions or credits you are may have access to to.

Frequently Asked Questions

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

Only if your SSDI exceeds the filing threshold for your age and filing status. For 2024, that is $14,600 for a single person under 65, or $18,350 if you are 65 or older. Most people on SSDI alone are below these thresholds. However, if you had taxes withheld from wages in prior years or think you might may have access to for the EITC, file anyway — you may get a refund.

Will my SSDI benefits be taxed if I work part-time?

Your SSDI itself may become partially taxable if your combined income (half your SSDI plus all other income) exceeds $25,000 (single) or $32,000 (married filing jointly). The calculation is automatic on your tax return. Your wages are always taxable, but you may may have access to for the EITC, which can reduce or eliminate that tax.

What if I lose my SSA-1099?

Call Social Security at 1-800-772-1213 and request a replacement. You can also view your SSA-1099 online through your my Social Security account at ssa.gov. If you file before receiving it, you can file an amended return once you have the form.

Can I file my taxes online if I receive SSDI?

Yes. Most tax software accepts SSDI income and handles the reporting automatically. If your income is below the IRS Free File threshold (around $79,000 for most filers in 2024), you can use free software through the IRS Free File program. Otherwise, commercial software is available for a fee.

Do I owe tax on SSDI if I am also receiving Supplemental Security Income (SSI)?

SSDI and SSI are separate programs. SSDI is not taxable (with the combined income exception noted above). SSI is never taxable. If you receive both, report only the SSDI on your tax return. SSI does not appear on a tax form.