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Level 1
March 18, 2021
Solved

FICA on Social Security Disability Insurance

  • March 18, 2021
  • 1 reply
  • 14 views

Should Turbo Tax calculate and add FICA taxes for disability benefits?  SSDI benefits are taxable.  Originally, FICA taxes were not withheld on monthly benefits; therefore, FICA may be due.  The 2020 Turbo Tax return did not add FICA tax and/or penalties for the year.  Is that correct?  How do I rectify?

 

Alternately, gross benefits are below the federal tax rate floor so non taxable.  Turbo Tax did not calculate federal taxes and deduct which should be correct.  

    Best answer by DaveF1006

    Expert Reviewed

    There are no FICA taxes requirements for SSDI payments so there is nothing for you to rectify. Turbo Tax has reported this correctly.  You are also correct in assuming there is no federal taxes withheld because you were below the filing threshold for the year. 

    1 reply

    DaveF1006
    DaveF1006Answer
    Level 15
    March 18, 2021

    Expert Reviewed

    There are no FICA taxes requirements for SSDI payments so there is nothing for you to rectify. Turbo Tax has reported this correctly.  You are also correct in assuming there is no federal taxes withheld because you were below the filing threshold for the year. 

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