Social Security disability back pay - is it taxable ? Received this year for 3 previous years.?

Answer 1

Supplemental Security Income (SSI) payments are never taxable. However, OASDI (regardless if it is age related or disability related) is potentially taxable income. You don't have to do an amended return. Instead, figure out how much of the benefit would have been taxable income in each of the earlier years, then add it all together for the current year.

For example, say you got $5,000 for each year 2004, 2005, and 2006. You go back to your 2004 tax return and find out that 85% of the payment would have been taxable. For 2005, you find out that 50% would be taxable. And, for 2006 you find out that 0% is taxable. So, in 2006, you would enter $15,000 in box 20a "Social Security Benefits" and you would enter $6,750 in box 20b "Taxable amount".

It is best to see a tax professional to do this because it can be a little confusing figuring out how to calculate the percentage.

Hope this answer helped. :)

Answer 2

1

Answer 3

Well I am on SSI. And I did not and have not and will not pay taxes on money paid to me by the Social Security Administration. The government is now your source of income. Why would it recieve taxes from itself? Call 1-800-772-1213.

Answer 4

It can be, but it depends on how much it is. When you get your tax slip (the 1099 I think it's called), it should tell you how to figure out if you have to file an income tax form. I'm on SSI too and I did not have to file last year because of the amount.

Answer 5

You should check with the IRS to be sure, but I don't believe any Soc Sec money is taxable.

Answer 6

please let me no what i will get a month for social security disability and what i will get back for my babk pay.

Answer 7

Yes.
Government doesnt give money away to anyone..