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Are Your Social Security Disability Insurance Benefits Taxable?

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:

  • Single: If you are single or file your taxes as an individual and your annual income is between $25,000 and $34,000, then about 50% of your SSDI benefits are taxable. If you make more than $34,000, then 85% of your benefits may be taxed.
  • Married: If you are married and file jointly, then you and your spouse can have a combined income of up to $32,000 before having to pay taxes on about 50% of your benefits. If you and your spouse have a combined income of more than $44,000, then 85% of your disability benefits may be taxed.

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.

Our Firm Approach

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.

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We Are Here For You!Contact Us Now For a Free Consultation

Have you had to stop working due to a physical and/or mental disability?YesNo
Have you seen a medical professional in the past 6 months for your disability?YesNo
Have you been advised by your medical professional that you are unable to work and need to file for disability?YesNo
Have you made an application for social security disability and/or had a hearing in front of an Administrative Law Judge?YesNo
Are you currently or have you in the past received any benefits from the Social Security Administration?YesNo

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Contact Info

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.