Are Social Security Disability Payments taxable? Im a little confused on how to do this on my taxes..?

Question

Any help would be greatly appreciated thanks

By the way im in Texas

1st answer: ITS NOT INSURANCE

Answer 2: MY WIFE IS THE ONE RECEIVING THE PAYMENTS AND HAS NO OTHER INCOME ... I HAVE INCOME THOUGH FROM MY JOB ... DOES THAT MATTER?

Answer 1

Some people who get Social Security Disability (SSD) may have to pay income taxes on those benefits based on what other income they may be receiving. This will apply to you only if you have other substantial income in addition to your benefits (for example, wages, self-employment, interest, dividends, pension, taxable disability insurance benefits, and other taxable income that you have to report on your tax return).

If you file a joint return:

You may have to pay taxes on 50 percent of your benefits if you and your spouse have a combined income that is between $32,000 and $44,000.

If your combined income is more than $44,000, up to 85 percent of your Social Security benefits is subject to income tax.


There is no state income tax in Texas, so you wouldnt need to file a state tax return.

See the link for income limitations:
http://www.hcvadvocate.org/hepatitis/hepC/Taxing%20disability%20benefits.htm

Answer 2

1

Answer 3

I wager is. The formula the IRS makes use of starts by ability of taking a million/2 of the SSDI and then provides all different earnings. If that entire is over $32,000, as much as 80 5% of the SSDI is taxable. See the 1040 training for the worksheet. there's a type your husband can use to have some tax withheld interior the destiny.

Answer 4

SSD can be taxable, depending on what other income the person has. When filing a joint return, the income of both people counts toward the limit of $32,000 for half of the SSD plus everything else. If your income is higher than that, then some of the SSD is taxable.

Answer 5

Up to 85% of the Social Security disability payments are taxable income depending on the total other household income. there is a work sheet in Publication 915 to compute the taxable portion of the SS Benefits

If you are Married Filing Jointly, if one half of your Social Securtiy plus all other income that appears on your return exceeds 32,000.00, then a portion of your Social Security will be taxable
http://www.irs.gov/pub/irs-pdf/p915.pdf

Answer 6

To find out whether any of your benefits may be taxable, compare the base amount (explained later) for your filing status with the total of:

One-half of your benefits, plus

All your other income, including tax-exempt interest.


When making this comparison, do not reduce your other income by any exclusions for:

Interest from qualified U.S. savings bonds,

Employer-provided adoption benefits,

Foreign earned income or foreign housing, or

Income earned by bona fide residents of American Samoa or Puerto Rico.

If the only income you received during 2006 was your social security or the SSEB portion of tier 1 railroad retirement benefits, your benefits generally are not taxable and you probably do not have to file a return. If you have income in addition to your benefits, you may have to file a return even if none of your benefits are taxable.

Base amount. Your base amount is:
$25,000 if you are single, head of household, or qualifying widow(er),

$25,000 if you are married filing separately and lived apart from your spouse for all of 2006,

$32,000 if you are married filing jointly, or

$-0- if you are married filing separately and lived with your spouse at any time during 2006

http://www.irs.gov/pub/irs-pdf/p915.pdf
worksheet is on page 15

Answer 7

Federal income taxation of disability insurance benefits depends on what type of benefits you receive, whether the premiums were paid with pretax or after-tax dollars, and who paid the premiums (you or your employer).

The disability proceeds are taxable to you if your employer paid all of the disability premiums for you and did not include the amount in your gross income, or if your employer paid you directly while you were disabled. If you paid all of the premiums with after-tax income, or if your employer made the contributions and included the amounts in your gross income, any disability insurance benefits paid to you are exempt from tax.