Yes, Social Security benefits may be taxable income depending on your tax situation. You may have taxable Social Security disability benefits if you claim other income on your tax return or if your spouse earns a substantial amount of income. If Social Security was your only income for the year, you may have no tax liability. A Dunn Social Security disability attorney can help you determine how much money you should set aside to pay for taxes.
If you file your taxes as an individual and earned between $25,000 and $34,000, you may have to pay taxes on 50% of your benefits.* If your income exceeds $34,000, up to 85% of your Social Security benefits may be taxable income. If you are married and file separately, you may also have to pay taxes.
The IRS forms 1040 and 1040A can help you calculate your modified adjusted gross income. Your Social Security Benefit Statement, SSA Form 1099, will help you determine how much of your benefits are taxable. If your modified adjusted gross income meets or exceeds the base amounts, a portion of your income may be taxable Social Security disability benefits. The base amount for individuals is $25,000, and the base amount for married couples is $32,000.
Contact a Dunn Social Security Disability Attorney
If you have questions about whether or not you have taxable Social Security disability benefits, contact Dunn Social Security disability attorney Brent Adams. He has 30 years of experience helping clients. If you need help understanding the tax ramifications of your Social Security benefits, schedule a free consultation by completing the form at the prior link or calling 800.849.5931.
*Keep in mind all figures included here were active at the time of this writing. Tax requirements change over time and individuals should consult an attorney with experience in tax applied to disability benefits.