That is a great questions!!
If your income is between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits. more than $34,000, up to 85 percent of your benefits may be taxable.
This link talks more about exactly how the tax is calculated.
https://turbotax.intuit.com/tax-tips/disability/is-social-security-disability-taxable/L5fPDpT4P
• Social Security Disability Insurance (SSDI) benefits may be taxable if you receive income from other sources, such as dividends or tax-exempt interest, or if your spouse earns income.
• If you are married and file jointly, you can report up to $32,000 of income (made up of half of your SSDI benefits plus all of your other income) before needing to pay taxes on your SSDI benefits.
• If you are single, Head of Household, Qualifying Widow(er), or Married Filing Separately (didn't live with spouse), you can report up to $25,000 of income (half of your SSDI benefits plus other income) before needing to pay taxes on your SSDI benefits.
• If you’re Married Filing Separately but lived with your spouse at any time during the tax year, none of your income is exempt from taxation.
If you only have SSDI income, then it would not be taxable.
I sure hope this has been helpful.
If you reply back, I will try to keep an eye open to assist further.
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Katie S.
Katherine S 63
