Do I Have To Pay Income Tax on Social Security Disability Benefits?

The answer is, “It depends.” You must pay federal income taxes on your Social Security disability benefits if either of the two following situations applies to you.

  • You file an individual federal tax return and your total income is greater than $25,000. Or,
  • You file a joint return and the income of you and your spouse is greater than $32,000.

You should also refer to the Internal Revenue Service (IRS) Notice 703 on the back of your Social Security Benefit Statement, Form 1099, to determine if any of your benefits are taxable. A copy of Notice 703 may be found by clicking this link: Notice 703.

Further note that the above only references federal income tax. Social Security does not have the authority to withhold state or local taxes from your disability benefits. However, many states and local authorities do not tax Social Security benefits. You should consult with your tax advisor and your state or local taxing authority for additional information.