Disability question

[laurasari]

I am hoping someone on disability can answer this question. Are disability payments taxable? I called social security they told me to call IRS. Lol they are closed due to the Federal shutdown
Thanks all
Laurie

[MSer102]

The IRS website is still operating. You can enter search terms and get IRS publications online.

[MSW1963]

If you have other income, for instance earned income that exceeds the SSDI max amount, you may owe taxes.

If you have other income, for instance if you take a distribution from a retirement account that was not taxable income when the contribution was made, it may become taxable when withdrawn.

SSDI benefits are not taxable, but 'other income' such as earned income or retirement income while receiving SSDI benefits, may result in owing federal and/or state taxes.

[laurasari]

Thanks. We are trying to find out if it counts towards our combined income to see if it is worth it for us to get insurance under Obama care until I get Medicare or to keep the expensive insurance we have now
Laurie

[cowboysnangels]

SSD is taxable

My husband is disabled for many years now, and yes his Social Security Disability is taxable. When he signed up we asked on the form to have taxes taken out rather than paying in each year. Hope that helps.

[Rich Feingold]

Hello laurasari and everyone. Here is a link to SSA's website concerning the taxability of Social Security benefits - http://www.ssa.gov/planners/taxes.htm. Please talk to your accountant or tax preparer concerning your financial situation and what might be the best move. Yes, things are getting more complicated.

Best of luck regarding this.

Rich