Whether you must file taxes on SSDI depends on your total income, not just your benefits
You may owe federal income taxes even if your only income is Social Security Disability Insurance (SSDI), but you may not. The answer depends on how much money you received from all sources combined in that year — not just from SSDI itself. The IRS has different income thresholds based on your age and filing status, and SSDI counts toward those thresholds in a specific way.
The key number is your combined income: half of your SSDI benefits plus any other income you had (wages, interest, dividends, self-employment income, and certain other sources). If that combined income exceeds a threshold set by the IRS, you owe federal taxes. Those thresholds change each year and vary depending on whether you are single, married filing jointly, or in another filing status.
Even if you do not owe federal taxes, you may still want to file a return — particularly if you had taxes withheld from other income or if you are may have access to to refundable credits like the Earned Income Tax Credit (EITC).
Key Takeaways
- You calculate whether you owe taxes using combined income (half your SSDI plus all other income), not your SSDI amount alone.
- The IRS thresholds that determine whether you must file change each year and depend on your age and filing status.
- You may not owe taxes but should still file if you had income taxes withheld or if you may be may have access to to refundable tax credits.
- The Social Security Administration sends Form SSA-1099 in January showing your SSDI income for the previous year, which you will need to file taxes.
How the IRS counts SSDI income for tax purposes
The IRS does not count your full SSDI benefit amount as taxable income. Instead, it counts half of your SSDI benefits as part of your combined income. This is the first step in determining whether you owe taxes.
For example, if you received $15,000 in SSDI in a year and had no other income, half of that ($7,500) counts toward your combined income. You then compare that $7,500 to the IRS threshold for your filing status. If the threshold is higher, you do not owe federal taxes on your SSDI.
However, if you also earned wages, received interest, or had other income, that full amount gets added to the half of your SSDI. A person receiving $15,000 in SSDI and $10,000 in wages would have a combined income of $17,500 ($7,500 from half the SSDI plus $10,000 in wages). That combined income is what you compare against the IRS threshold.
IRS income thresholds for 2024 and how they work
The IRS sets different thresholds based on your age and filing status. For 2024, the thresholds are:
| Filing Status | Age Under 65 | Age 65 or Older |
|---|---|---|
| Single | $14,600 | $18,300 |
| Married Filing Jointly (both under 65) | $29,200 | — |
| Married Filing Jointly (one spouse 65+) | — | $30,750 |
| Married Filing Jointly (both 65+) | — | $32,300 |
| Married Filing Separately | $1 | $1 |
These thresholds change each year. You can find the current year's thresholds on the IRS website or in the instructions that come with the tax forms. If your combined income is at or below the threshold for your situation, you do not owe federal income tax on your SSDI.
If your combined income exceeds the threshold, you may owe taxes on a portion of your SSDI benefits. The calculation is complex — the IRS uses a formula that can result in up to 85 percent of your benefits being taxable — but the Social Security Administration and tax software can help you work through it.
When you should file even if you do not owe taxes
You may have no tax liability but still benefit from filing a return. If you had federal income tax withheld from wages or other income, filing allows you to claim a refund of that money. The IRS will not return it to you automatically.
You should also file if you may be may have access to to refundable tax credits. The Earned Income Tax Credit (EITC) is the most common one for people with low income. Even if you owe no tax, you can claim the EITC on your return and receive the credit as a refund. Other credits like the Child Tax Credit may also explore to your situation.
Filing is free. The IRS offers free tax preparation through the Free File program if your income is below a certain level, and many community organizations offer free tax help as well.
What documents you need to file taxes on SSDI
The Social Security Administration sends you Form SSA-1099 each January. This form shows how much SSDI you received in the previous year. You will need this form to file your taxes accurately.
You will also need documentation of any other income you received: W-2 forms from employers, 1099 forms for self-employment or other income, bank statements showing interest, and records of any other earnings. Keep these documents together with your SSA-1099 when you file.
If you are filing with a tax preparer or using tax software, have all these documents ready before you start. The preparer or software will ask for the information from each form.
What happens if you do not file when you should
If you owe taxes and do not file, the IRS may assess penalties and interest on the amount owed. The longer you wait, the larger those penalties become. Filing late is better than not filing at all — you can still file back years and claim refunds if you are owed money.
Not filing does not affect your SSDI benefits themselves. The Social Security Administration does not penalize you for tax filing decisions. However, if the IRS assesses taxes owed, they may eventually pursue collection, which could affect other income or assets.
If you are unsure whether you owe taxes or how much, filing a return is the safest choice. The cost of free or low-cost tax preparation is far less than the cost of penalties and interest.
Getting help with your tax situation
You do not have to figure this out alone. The IRS offers free tax preparation through the Free File program if your income is below the threshold (which changes yearly). You can find participating tax preparation organizations on the IRS website.
Many community organizations, senior centers, and disability advocacy groups also offer free tax help. The National Foundation for Credit Counseling and similar organizations can connect you with local resources. Some tax preparation services offer reduced fees for people with low income.
If you have questions about how SSDI is taxed specifically, you can call the Social Security Administration at 1-800-772-1213 (TTY 1-800-325-0778) and ask to speak with someone about your tax situation. They cannot give tax information, but they can confirm how much you received in benefits and answer questions about how SSDI works.
Frequently Asked Questions
Can SSDI benefits be taxed?
Yes, but only partially. The IRS counts half of your SSDI benefits as part of your combined income. Depending on your total combined income and filing status, up to 85 percent of your benefits may be subject to federal income tax. However, many people on SSDI owe no federal tax because their combined income falls below the IRS threshold.
Do I have to file taxes if I only receive SSDI and no other income?
Probably not, but it depends on how much SSDI you received. If half your SSDI benefits plus any other income is below the IRS threshold for your age and filing status, you do not have to file. However, you may want to file anyway if you had taxes withheld from other income or if you may have access to for refundable credits.
What if I earned money while on SSDI?
Wages count as income and are added to half your SSDI benefits to calculate your combined income. If that combined income exceeds the IRS threshold, you may owe federal taxes. Additionally, if you earned enough money, it may affect your SSDI benefits themselves under Social Security's work incentive rules — that is a separate issue from taxes.
Where do I get Form SSA-1099?
The Social Security Administration mails Form SSA-1099 to you in January each year showing your SSDI income for the previous year. If you do not receive it by early February, you can call Social Security at 1-800-772-1213 or create an account on ssa.gov to view and print it online.
What if I cannot afford to pay taxes I owe?
Contact the IRS if you owe taxes but cannot pay in full. The IRS offers payment plans and can sometimes reduce penalties if you have a valid reason for not paying. You can set up a payment plan by calling 1-800-829-1040 or through the IRS website. Do not ignore a tax bill — the IRS will work with you on payment options.