Guiding You Through the Disability Maze
As we approach tax season, one of the most common questions we hear at The Khaki Law Firm is “Now that I have been approved for Social Security Disability (SSDI) benefits, are those benefits taxable?” For the majority (approximately 2/3) of those who are receiving SSDI benefits, the answer is no. Unlike Social Security retirement benefits, which are based upon the amount of Social Security taxes paid during your working years, many SSI (Supplemental Security Income) recipients qualify for these disability benefits on a financial need basis; he or she falls below the household income and asset threshold. Therefore, many SSDI recipients do not receive a high enough monthly income to be taxed to begin with.
However, about 1/3 of Social Security Disability benefit recipients may have to pay some taxes, because of additional household income or because of their spouse’s income. Here is how the federal income tax system may affect these SSDI recipients:
Most states, including Georgia, do not tax Social Security disability benefits. Georgia does impose income taxes but exempts 100% of SSDI benefits from a resident’s tax liability.
Please be advised that The Khaki Law Firm does not specialize in tax law and our firm does not have accountants on staff. The above information is provided for the purpose of giving you a general idea of how SSDI benefits may be taxed. For more information about your SSDI benefits and taxes, you can visit the Social Security Tax Calculator. To best determine how your disability income will be taxed, please seek the advice of your accountant or contact us for a referral to an accountant.
There are many Social Security disability law firms throughout Georgia. What sets The Khaki Law Firm apart from the rest? Why should you choose us? We are honored to represent those who have worked hard most of their lives, but due to a mental or physical impairment are no longer able to maintain employment and earn an income.
With offices in Alpharetta, Atlanta and Marietta, we provide legal assistance to people throughout Georgia and the Southeast in all matters of Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
We are ready to help you, and offer multiple ways to reach us.