I always assumed that persons that were drawing the disability was unable to work any way, So my thought goes on too: Why would they have a tax on that Disabilty when the person recieving this would be unable to pay tax on it? Comments please!!
2007-03-31 02:16:41 · 4 answers · asked by roy c 1 in Business & Finance ➔ Taxes ➔ United States
If one half of the Social Security plus all other sources of household income exceed a certain dollar amount based on the filing status, a portion of the Social Security can be taxable up to 85%.
If Social Security Disability is your only source of income then none of it is taxable
Listed is the total income limits based on filing status
If you are a Single filer or Married Filing Separately and you did not live with your spouse, if one half of your Social Security plus all other income that appears on you return exceed 25,000.00 then a portion of your Social security will be tax able.
If you are Married Filing Jiontly, 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
If you were Married Filing Separately and lived with your spouse even one day of the Tax year, You will have a taxable portion of your Social Security.
In all scenerio's the maximum amount of your benefits that can be taxed is 85%, complete the worksheet in Pub 915.
Publication 915
http://www.irs.gov/publications/p915/index.html
If you are married and your spouse works, that income is added to the equation, If you receive a pension from your place of employment that is also added to the equation
2007-03-31 02:29:32 · answer #1 · answered by Anonymous · 2⤊ 0⤋
SSI isn't taxable, and doesn't need to be reported.
Not all disability payments are SSI. Social security disability is SSD, not SSI, and might be taxable depending on other income on the person's tax return. Even if they aren't working, it's still possible to have other types of income, such as investments or a spouse's income on a joint return.
2007-03-31 13:07:40 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Look on your 1040 / 1040A tax form. Everyone should pay some tax
2007-03-31 02:21:28 · answer #3 · answered by Jim W 4 · 0⤊ 2⤋
That is not taxable if it's your sole source of income.
2007-03-31 02:20:00 · answer #4 · answered by Bostonian In MO 7 · 2⤊ 0⤋