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SSDI federal and state taxes

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    SSDI federal and state taxes

    My head is swimming. I've been trying get info on how to figure out how much I need to have taken out for federal and state taxes. I've seen the calculation for federal taxes but I'm totally confused. I've called SS dept. They can't help. The tell me to call IRS. I've called IRS, they send me to the website that I visited prior to my phone call. I don't know where to start to get this done right.
    My brain needs slow, step by step instructions.

    If anyone can point me in the right direction, It would be greatly appreciated.

    Allison

    Allison

    #2
    States vary as to whether SSDI is taxable.

    On the federal level, whether taxable and percentage taxed can vary. Are you single? If married, yoyr spouse's income affects tax rate. If single, you need to look at other income as well, along with any dependents you may have.

    How do you normally prepare your taxes? If you use TurboTax, you could redo 2017 taxes, putting in SSDI award and other variables to see what you would have paid and use that as an estimate.

    The other thing to consider is if you are getting a back award, which then could increase your taxes for the first year.

    If it is really stressful, it may be worth consulting a tax attorney. You could reach out to local NMSS chapter to see if any volunteer services offered either pro-bono or at a discounted rate.
    Kathy
    DX 01/06, currently on Tysabri

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      #3
      Thank you Kathy. I am married. I will find someone to help with this.

      Allison

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        #4
        Yeah; I don't know. I do my taxes online and I don't remember it being confusing when I do it that way. I just put the amount in the correct blank and the program does the calculations for me. I don't use Turbo Tax. I think mine is called Free Tax USA.
        ~ Faith
        MSWorld Volunteer -- Moderator since JUN2012
        (now a Mimibug)

        Symptoms began in JAN02
        - Dx with RRMS in OCT03, following 21 months of limbo, ruling out lots of other dx, and some "probable stroke" and "probable CNS" dx for awhile.
        - In 2008, I was back in limbo briefly, then re-dx w/ MS: JUL08
        .

        - Betaseron NOV03-AUG08; Copaxone20 SEPT08-APR15; Copaxone40 APR15-present
        - Began receiving SSDI / LTD NOV08. Not employed. I volunteer in my church and community.

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          #5
          Unfortunately, the SSA provides no guidance for claimants on this issue, and it is very individualized. As noted above, marital status, family income, family size and state of residence all impact whether and how much the benefits are taxed. Reaching out to a tax preparer is a good start for this question, and the MS Society will often have individuals who can help.
          Attorney Jamie R. Hall's practice is focused on assisting individuals with claims and appeals for Social Security Disability and Long Term Disability benefits. He has assisted claimants nationwide, approximately half of whom are MS patients, from his Pennsylvania and Ohio locations. **No attorney/client relationship is created by this communication, and information provided herein is not a substitute for formal advisement.**

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            #6
            Thank you for your replies.

            Allison

            Allison

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