Are SSD Benefits Taxable?

Over the past 20 years, the Texas law office of David Dopkin, Attorney at Law, has assisted more than 3,500 clients with Social Security Disability (SSD) and Supplemental Security Income (SSI) claims. In that time, one of the questions that clients have often asked is, “Are SSD benefits taxable?”

The answer to that question depends to a large degree on your income and marital status. If your only income is from SSD benefits, you typically will not be taxed. However, if you have a working spouse, part of your benefits may be taxable.

If you are single and your yearly income exceeds $26,000 a year (or you are married and your joint income exceeds $32,000 a year), your SSD benefits will be 50 percent taxable.

Retroactive Benefits

Obtaining retroactive benefits can also affect your tax status. Sometimes individuals must appeal a denied claim for several years before they are approved for benefits and they receive the past-due money. Receiving such a large amount all at once can bump you into a higher tax bracket. However, there are often ways to avoid this. You may be able to file amended tax returns for the previous years and reduce the amount of taxes you owe.

A professional tax adviser can advise you further about lump-sum distributions and other issues.

Free Initial Consultation

Learn more about the implications of SSD and SSI benefits by contacting David Dopkin, Attorney at Law, for a free initial consultation. Call our Houston lawyer at 281-407-8026 or send us an email. We look forward to speaking with you.

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