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New Member
posted Jun 3, 2019 12:01:12 PM

"I have SS permanent disability starting in 2017 but also earn a small amoutn of money. I did not receive an SS 1099. Do I have to pay taxes on the SS income?

I teach 1 or 2 classes per year and get a W-2 and am self employed and recieve a Misc-1099, and personal checks as payment.  What I earn is below the limit allowed for someone on permanent disablilty.  When I applied for disability, I was told I would have to pay taxes on it, but now I can't figure out how.  I want to do the right thing.

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1 Best answer
New Member
Jun 3, 2019 12:01:13 PM

Social Security disability benefits (SSDI) can be subject to tax, but most disability recipients don't end up paying taxes on them because they don't have much other income. Your W-2 and 1099-MISC income, although below the limit allowed for permanent disability, might be taxable according to the amount, and can cause part of your SSDI benefits to be taxable. TurboTax will figure this out for you.  

You have to enter your 1099-MISC income as self-employment income. You can deduct "business" expenses you had against this income.  You need to file Schedule C to get these deductions.  Here's how to enter it in TurboTax:

https://ttlc.intuit.com/replies/4770594

To enter your home office, vehicle mileage, supplies and other common business expenses:

  1. Type “Schedule C” in the Search box.
  2. Select the “Jump to” link.
  • If this is your first time working in this section: You’ll be asked some questions about your self-employment work, and then have a chance to enter your expenses.
  • If  you have already entered some information about your self-employment work:
    • Select Edit next to your business, and confirm your general business info if asked.
    • Select Add expenses for this work OR, if this your first time entering expenses, select Continue on the Let's get the deductions...screen.
    • Follow the screens to enter your expenses

2 Replies
New Member
Jun 3, 2019 12:01:13 PM

Social Security disability benefits (SSDI) can be subject to tax, but most disability recipients don't end up paying taxes on them because they don't have much other income. Your W-2 and 1099-MISC income, although below the limit allowed for permanent disability, might be taxable according to the amount, and can cause part of your SSDI benefits to be taxable. TurboTax will figure this out for you.  

You have to enter your 1099-MISC income as self-employment income. You can deduct "business" expenses you had against this income.  You need to file Schedule C to get these deductions.  Here's how to enter it in TurboTax:

https://ttlc.intuit.com/replies/4770594

To enter your home office, vehicle mileage, supplies and other common business expenses:

  1. Type “Schedule C” in the Search box.
  2. Select the “Jump to” link.
  • If this is your first time working in this section: You’ll be asked some questions about your self-employment work, and then have a chance to enter your expenses.
  • If  you have already entered some information about your self-employment work:
    • Select Edit next to your business, and confirm your general business info if asked.
    • Select Add expenses for this work OR, if this your first time entering expenses, select Continue on the Let's get the deductions...screen.
    • Follow the screens to enter your expenses

New Member
Feb 3, 2021 12:23:01 PM

I went on SSDI in the middle of 2019. I receive a monthly retirement payment of $658.00 . how do i file.