I've recently become disabled and now receive SSDI. My benefits are not income-dependent. I have found a lot of information saying that most people receiving disability do not need to have federal taxes withheld, but some do. I can find virtually no information on how to tell which group I'm in.
Also, Social Security requires me to write in a specific percentage on the form to request withholding, rather than simply checking a box. So not only do I not know if I need to have federal taxes withheld or not, I also have no idea what withholding rate to request. I'm on a fixed income now and don't have the resources to survive if I am caught off guard by a large, unexpected tax liability. I also can't imagine that I am the only person in the country who doesn't have the answers!
So, would you help us out? How does one know what their responsibility is in this case?
