Start with the basics: what you actually have to report
If you receive SSDI, you report it on your tax return the same way you report any other income — but the rules about whether you actually owe tax on it depend on your total income for the year. The Social Security Administration sends you a Form SSA-1099-SM each January showing how much SSDI you got. You use that number when you fill out your tax return.
The key question is whether your SSDI plus any other income you had that year pushes you over the threshold where tax is owed. That threshold is different for each person and depends on your filing status and age. If you're under 65 and single, for example, you generally don't owe federal tax unless your combined income was over $13,850 in 2023 — but that number changes each year, and it's higher if you're 65 or older.
Many people on SSDI have little or no other income, which means they don't owe tax even though they have to report the SSDI. But if you work part-time, have investment income, or receive other benefits, the math changes.
Key Takeaways
- You report SSDI income using the Form SSA-1099-SM that Social Security mails to you each January.
- Whether you owe tax depends on your total income for the year, not on SSDI alone.
- If your only income is SSDI and it's below the annual threshold for your age and filing status, you typically owe no federal tax.
- You can file for free using IRS Free File if your income is below a certain level, or use a tax professional who has experience with SSDI cases.
- If you don't file even when you don't owe tax, you may lose out on refundable tax credits like the Earned Income Tax Credit.
How to get your SSDI income information from Social Security
Social Security mails Form SSA-1099-SM to you by January 31 each year. This form shows the total SSDI you received in the previous calendar year. Check the amount carefully — if it doesn't match your records, contact Social Security right away to report the error.
If you don't receive the form by early February, you can request a replacement copy by calling Social Security at 1-800-772-1213 or by visiting your local Social Security office. You can also create an account at ssa.gov and view your SSA-1099-SM online before the paper copy arrives.
Keep this form with your tax records. You'll need it to fill out your return, whether you do it yourself or work with a tax preparer.
Understanding the income thresholds that determine if you owe tax
The IRS sets a standard deduction each year — an amount of income you can earn without owing federal tax. If your total income is below that number, you owe no tax. The standard deduction changes based on your age and filing status.
For 2023, the standard deduction was $13,850 for a single person under 65, and $20,800 for a married couple filing jointly under 65. If you're 65 or older, the standard deduction is higher — $17,550 for a single person and $26,450 for a married couple. These numbers increase slightly each year.
To know whether you owe tax, add up all your income for the year: SSDI, wages from work, interest, dividends, rental income, or any other money you received. If that total is below the standard deduction for your situation, you owe no federal income tax. But you may still want to file anyway — see the section on refundable credits below.
Reporting SSDI on your actual tax form
SSDI goes on Form 1040, the main federal income tax return. On that form, you report SSDI on line 5b under "Income." You'll enter the amount from your Form SSA-1099-SM.
If you have other income — from a job, self-employment, interest, or investments — you report each type on its own line. Then you add them all together to get your total income. From there, you subtract the standard deduction to find your taxable income. If that number is zero or negative, you owe no tax.
The exact lines and form layout can change year to year, so use the current year's Form 1040 instructions from the IRS website (irs.gov). If you use tax software, the program walks you through each line and asks you questions to fill it in correctly.
Free and low-cost ways to file your return
The IRS offers Free File, a program that lets you file your federal return at no cost if your income is below a certain level. In 2023, that limit was $73,000 for most filers. If you're on SSDI with little other income, you almost certainly may have access to.
To use Free File, go to irs.gov and look for the Free File link. The IRS partners with tax software companies that offer their full programs free to people who meet the income limit. You can file online from home, and the software guides you through each step.
If you prefer to work with a person, many nonprofits and community centers offer free tax preparation during tax season. Search for "VITA" (Volunteer Income Tax information) or "TCE" (Tax Counseling for the Elderly) sites near you — both programs are free and staffed by trained volunteers or counselors. Some sites specialize in working with people on disability benefits and understand the details of SSDI taxation.
Why you might file even if you don't owe tax
If your only income is SSDI below the standard deduction, you technically don't have to file. But filing can put money in your pocket through refundable tax credits.
The most common is the Earned Income Tax Credit (EITC). If you have any earned income from work — even a small part-time job — you may may have access to for the EITC, which can give you a refund of hundreds or even thousands of dollars. You only get that money if you file a return; the IRS won't send it to you automatically.
Other credits, like the Child Tax Credit, also require you to file. If you have dependents or other circumstances that might may have access to you for credits, filing is worth doing even if you owe no tax.
What happens if you have both SSDI and work income
If you work while receiving SSDI, you report both the SSDI and your wages on your tax return. Your total income determines whether you owe tax. But be aware that working can also affect your SSDI payment itself — Social Security has work incentive programs that let you earn money without losing your full benefit, but the rules are strict and the limits change based on your situation.
Tax filing and SSDI work incentives are separate systems, so don't assume that because you don't owe tax, your work income won't affect your SSDI. Talk to a work incentive specialist at your local Social Security office or a disability work organization before taking a job, so you understand both the tax side and the benefit side.
Frequently Asked Questions
Do I have to file a tax return if I only receive SSDI?
Not if your SSDI is your only income and it's below the standard deduction for your age and filing status. However, if you have any other income or dependents, or if you might may have access to for tax credits, filing is usually worth doing even if you owe no tax.
What if I made a mistake on a previous year's return?
You can file an amended return using Form 1040-X for any of the past three years. If you underpaid tax, you'll owe the difference plus interest. If you overpaid, you'll get a refund. The IRS website has instructions for amended returns, or a tax preparer can help.
Can I get help filing if I'm confused about the forms?
Yes. VITA and TCE sites offer free help, and many disability organizations provide tax information specifically for people on SSDI. You can also hire a tax preparer or CPA, though that costs money. Some preparers offer reduced rates for people with low income.
What if Social Security sent me the wrong amount on my SSA-1099-SM?
Contact Social Security when ready at 1-800-772-1213 or visit your local office. Ask them to issue a corrected form. Don't file your tax return until you have the correct amount — filing with the wrong number can cause problems with the IRS later.
Does filing a tax return affect my SSDI benefits?
Filing a tax return itself does not change your SSDI payment. However, if you have work income, that income can affect your benefit under Social Security's work incentive rules. The tax filing and the benefit calculation are separate, so talk to Social Security about work income before you earn it.