Do I Have to Pay Taxes on My Social Security Disability Benefits? Find Out Now
One of the things about American life that we all have to face is that Uncle Sam wants his cut when it comes to taxes. From state income tax, to capital gains, federal income tax, and even to some lawsuit settlement proceeds, taxes are something that virtually all Americans are familiar with, and must do their duty to pay. In light of the various tax obligations that we all have in our lives, many Social Security Disability benefits recipients and disabled individuals seeking Social Security Disability benefits may wonder whether they will have to pay taxes on their Social Security Disability benefits. But does Uncle Sam want a cut of your Social Security Disability benefits in the form of a tax payment? We answer that question here.
Social Security Administration Rules and Regulations – Taxes on Social Security Disability Benefits
Whether a Social Security Disability benefits recipient will have to pay taxes on their Social Security Disability benefits depends on the recipient’s combined income. As the Social Security Administration explains, “You must pay taxes on up to 85% of your Social Security benefits if you file a…Federal tax return as an ‘individual’ and your ‘combined income’ exceeds $25,000,” or file a “Joint return, and you and your spouse have ‘combined income’ of more than $32,000.” The term “combined income” in the Social Security world includes a Social Security Disability benefits recipient’s adjusted gross income, tax-exempt interest income, and one-half of their annual Social Security Disability benefits. In addition, the Social Security Administration notes that “If you are married and file a separate return, you probably will have to pay taxes on your benefits.” Finally, there is one strategy that Social Security Disability benefits recipients can use if they are concerned about their tax obligations on their Social Security Disability benefits. The Social Security Administration explains that, “If you receive Social Security benefits, you can ask us to withhold funds from your benefits, and we will credit them toward your federal taxes.” Social Security Disability benefits recipients can use the Voluntary Tax Withholding option through their “My Social Security” account online to use this strategy.
Getting Legal Help with Your Social Security Disability Case – Social Security Disability Lawyer
As demonstrated even just by the rules regarding Social Security Disability benefits tax obligations, it is clear that the rules and regulation that govern Social Security Disability benefits are complex and challenging, and those individuals unfamiliar with the law and process may feel like navigating the Social Security Disability benefits process is an uphill battle. If you are seeking Social Security Disability benefits and you need legal help, it is, accordingly, best to speak with an experienced Social Security Disability lawyer about your case. An experienced Social Security Disability lawyer can help you navigate the complex applications process to get Social Security Disability benefits due to you.
The experienced Social Security Disability lawyers at Nationwide Disability Law are here to help disabled Americans get important Social Security Disability benefits due to them. Contact Nationwide Disability Law today and speak to a lawyer about your case now.
Source:
ssa.gov/faqs/en/questions/KA-02471.html
