I am on 100% Social Security Disability. Will I have to pay federal or state income taxes on that money?

Answer 1

Maybe, but probably not-it depends on your other income and if you are married. If you are single with no other income then no, you won't owe any tax on it. However, if you have a private pension or other income over $25K ot your married spouse makes over $32K, it may be taxed.

Up to 50% of Social Security benefits are taxable if total “provisional income” (adjusted gross income, tax-exempt interest and one half of Social Security benefits) exceeds a base amount: $25,000 for single taxpayers and $32,000 for married taxpayers filing jointly. At this level, taxes are payable on the lesser of (1) 50% of Social Security benefits received, or (2) one half of the difference between provisional income and the applicable base amount. Fortunately, this is the end of the income taxation picture for most recipients of disability benefits.

A second tier of income tax - reaching up to 85% of Social Security benefits received - kicks in (1) for single taxpayers with provisional income over $34,000, (2) for married taxpayers filing jointly with provisional income over $44,000, and (3) for all married taxpayers who file separate returns, but do not live apart.

Answer 2

1

Answer 3

That depends on any other income declared on your 1040. For example, if you're married, and partner makes $X and that plus your disability drive your income above a certain level, yes, you will pay taxes. Best to check with IRS about the income levels.

Answer 4

For federal, if it's your only income - if you have other income also, including if your spouse has income, then maybe you'll owe tax on the SSDI.

State taxes depend on your state laws - in most places you wouldn't owe tax on the SSDI.

Answer 5

No.