Hello @dkatya ,
Thank you for being a part of ’Ask the Expert' Event!
Who needs to pay taxes on SSDI payments & how much?
Whether or not your Social Security income is taxable depends on your total income, including your Social Security plus any other income. Generally speaking, if your only income is Social Security, you probably don't make enough money to be required to file a federal tax return.’
If you earn between $25,000 and $34,000 per year as a single filer (or $32,000 to $44,000 if you’re married filing jointly), you will pay income taxes on up to 50% of your Social Security benefits. If you earn more than $34,000 (or $44,000 if you’re married filing jointly), you’ll pay taxes on up to 85% of your benefits. You will never be taxed on more than 85% of your Social Security benefits.
Withholding for Social Security is voluntary (W-4V) in which you can select to have 7, 10, 12 or 22 percent taxed on your monthly benefits. How much or which percentage to select, I am going to include a link to one of our tax calculators that will assist you in estimating your tax situation.
Here are some links for you to view regarding your situation:
Is my Social Security income taxable?
Determining Who Is Taxed
TaxCaster Tax Calculator
NitaK, EA
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