There are two types of payments:
- A portion of SSDI (Social Security
Disability Income) may be taxable. You should receive a Form 1099-SSA from
Social Security which can be entered directly into TurboTax. If SSDI is
your only income you would not be required to file a return.
- SSI (Supplemental Security Income) is
non-taxable. From Publication 970: "Social security benefits do
not include SSI payments, which are not taxable. Do not include these
payments in your income." Because they are non-taxable,
any legal fees to secure the benefits are not deductible.
(Also, if the SSDI payments are to
children and the Form 1099-SSA is in the child's name they would be reported on
the child's return, not the parents.)
