You rely on monthly checks from Social Security Disability Insurance (SSDI) to pay for your basic expenses. However, you’re worried about whether or not you’ll have to pay taxes on your checks, which could reduce your benefits in Washington. Here’s some more information on whether or not SSDI – as well as SSI – are taxable.

Taxes and SSDI

You could be taxed on your SSDI payments if you make too much income.

The thresholds are as follows: If your annual income is $0 to $25,000, then your SSDI benefits will not be taxed. If your annual income is $25,000 to $34,000, you could pay up to 50% in taxes on your benefits, and if your annual income is more than $34,000, then you could be taxed up to 85% on your benefits. According to the Social Security Administration, about 56% of Social Security recipients pay taxes on the benefits they receive.

If you need to pay taxes on your Social Security, you can request that Social Security withhold federal taxes on your benefit payments, or you could just pay quarterly estimated taxes to the IRS.

What About SSI?

If you’re receiving Supplemental Security Income because you have never worked or you can’t work much due to a disability or your age, then you don’t have to worry about taxes. SSI benefits are never taxed.

Working With Schott Law

If you need help with figuring out whether or not you owe taxes on your Social Security benefits, Schott Law is here for you. Maggie Schott is an SSDI & SSI lawyer serving Washington and Idaho. Contact us now at (509) 328-5789 to start your application.