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trechique21
New Member

I was on State Disability insurance for the 2019 tax year which amounted to over $35,000. Do I file taxes? It was my only source of income...

 
1 Reply
LindaB1993
Expert Alumni

I was on State Disability insurance for the 2019 tax year which amounted to over $35,000. Do I file taxes? It was my only source of income...

I need to distinquish whether you received SSI payments,  SSDI benefits. or SDI

 

The SDI program is state-mandated and funded through employee payroll deductions. Workers covered by SDI have two benefits available to them: Disability Insurance (DI) and Paid Family Leave (PFL).  SDI benefits are taxable only if paid as a substitute for unemployment insurance (UI) benefits. ... When SDI benefits are received as a substitute for UI benefits, the SDI is taxable by the federal government

 

The major difference is that SSI (Supplemental Security Income) determination is based on age/disability and limited income and resources, whereas SSDI (Social Security Disability Insurance) determination is based on disability and work credits. In addition, in most states, an SSI recipient will automatically qualify for Medicaid.

 

SSI payments are not taxable, however. SSDI benefits, like other Social Security income, must be reported on your tax return. Whether you pay tax on those benefits depends on your total income and benefits for the year.

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