SSDI is taxed the same way in Missouri as it is everywhere else in the United States

Missouri does not have a separate state income tax rule for SSDI. Whether your Social Security Disability Insurance payments are taxed depends entirely on your total income for the year — not on where you live. The federal government decides if SSDI is taxable income, and Missouri follows that same rule.

This means if you live in Missouri and your SSDI is taxable under federal rules, you will owe federal income tax on it. Missouri does not add its own tax on top of that, and it does not exempt SSDI from state taxes either. The calculation is the same whether you are in Kansas City, St. Louis, or anywhere else in the state.

Key Takeaways

  • Missouri has no special SSDI tax rule — federal tax law applies to all SSDI recipients in the state.
  • Whether SSDI is taxable depends on your combined income (SSDI plus other income), not on your location.
  • If you owe federal tax on SSDI, you owe it; Missouri does not reduce or eliminate that tax.
  • You can request that the Social Security Administration withhold taxes from your SSDI payments so you do not owe a large amount at tax time.

How the federal SSDI tax rule works

The IRS uses a formula called "combined income" to decide if SSDI is taxable. Combined income is your adjusted gross income plus nontaxable interest plus half of your SSDI for the year. If that number exceeds a threshold, part or all of your SSDI becomes taxable.

For 2024, the thresholds are $25,000 for single filers and $32,000 for married couples filing jointly. These thresholds have not changed since 1984. If your combined income is below the threshold, your SSDI is not taxed. If it is above, you may owe tax on up to 85 percent of your SSDI payments.

Missouri does not adjust these thresholds, does not offer a state deduction for SSDI, and does not tax SSDI differently than any other state does. The same rule applies in all 50 states.

What counts as income for the SSDI tax calculation

Combined income includes wages, self-employment income, interest, dividends, rental income, and other forms of earnings. It also includes half of your SSDI payments themselves. This is why someone with modest wages and SSDI can end up owing tax — the SSDI counts twice in the formula.

Certain types of income do not count toward combined income. These include Supplemental Security Income (SSI), railroad retirement benefits, and some veterans' benefits. If you receive only SSDI and no other income, your combined income is half your SSDI, which is almost always below the threshold.

If you have a spouse, their income counts too, even if you file separately. This is one reason married couples often file jointly when one spouse receives SSDI.

Withholding taxes from your SSDI payments in Missouri

You can ask the Social Security Administration to withhold federal income tax directly from your SSDI payments each month. This way you do not have to pay a large amount when you file your tax return. You fill out Form W-4V (Voluntary Withholding Request) and send it to your local Social Security office or mail it to Social Security.

You can choose to withhold 7, 10, 15, or 25 percent of your monthly payment. Many people choose 10 or 15 percent as a middle ground. If you change your mind, you can stop withholding or change the amount by submitting a new Form W-4V.

Withholding is voluntary, and Social Security will not withhold unless you ask. If you do not withhold and you owe tax, you will owe it when you file your return in April.

Filing taxes in Missouri when you receive SSDI

You file your federal tax return the same way whether you live in Missouri or elsewhere. You report your SSDI on line 5b of Form 1040 (the main federal tax form). If part of your SSDI is taxable, you include that amount in your taxable income.

Missouri does not require a separate state tax return for SSDI income. However, Missouri does have a state income tax, and you may owe state tax on other income you receive — such as wages or interest. SSDI itself is not subject to Missouri state income tax, but your other income is.

If you have questions about your specific situation, the IRS has a free tax help line, and many communities offer free tax preparation for people with low to moderate income through the Volunteer Income Tax information (VITA) program.

What to do if you think you owe tax on SSDI

Start by calculating your combined income for the year. Add up all your income sources, add half your SSDI, and compare it to the threshold ($25,000 for single filers, $32,000 for married filing jointly). If you are below the threshold, you do not owe tax on SSDI.

If you are above the threshold, you can use the IRS Worksheet for Line 5b in the Form 1040 instructions to figure out how much of your SSDI is taxable. This worksheet walks you through the calculation step by step. You can also use tax software, which does the calculation for you.

If you have not been withholding taxes and you think you will owe, you have two options: make estimated tax payments before April, or wait and pay the full amount when you file. If you owe a large amount, you may be able to set up a payment plan with the IRS.

Frequently Asked Questions

Does Missouri tax SSDI differently than other states?

No. Missouri follows the same federal SSDI tax rules as every other state. There is no Missouri-specific exemption or tax on SSDI. The only difference between states is how they tax other types of income, which does not affect SSDI.

If I live in Missouri and move to another state, does my SSDI tax situation change?

Your federal SSDI tax situation does not change. However, some states have different rules about taxing other income, so your overall tax bill might change. Check the tax rules in your new state, especially if you have wages or retirement income in addition to SSDI.

Can I get a refund if I had too much tax withheld from my SSDI?

Yes. If you had taxes withheld and you end up owing less tax than was withheld, you will receive a refund when you file your return. This is true in Missouri and everywhere else. File your return to claim the refund.

What if I did not know SSDI could be taxed and I did not pay taxes on it?

Contact the IRS or a tax professional. You may owe back taxes, but the IRS has options for people who did not know they owed tax. The sooner you address it, the better. You can also call the IRS at 1-800-829-1040 for guidance on your situation.