The answer to your question about the impact on your taxes turns on whether you have other taxable income, such as income from a salary, interest income from a bank account, etc., and whether your disability income is taxable.
If you received SSDI (Social Security Disability Income), it may be taxable if you have income from other sources, such as dividends or tax exempt interest, or if you are filing with your spouse who earns income. See this article for the parameters around whether SSDI is taxable.
Apart from SSDI benefits, the taxability of disability income depends on the type of disability income you received. For example, disability benefits you receive from the Department of Veterans Affairs (VA) aren’t taxable at all and don’t even need to be reported on your tax return. The TurboTax article “Is disability income taxable?” provides information about the taxability of various types and sources of disability income you might have received.
The answer to your question about whether you’ll be in a lower tax bracket depends on your taxable income this year, as discussed above, compared to your taxable income for 2023. If your total taxable income is lower this year, you may well be in a lower tax bracket, which would reduce your overall tax liability. This article, “What is a Tax Bracket?” provides the tax brackets for 2023 and 2024, and offers a point of comparison for your projected 2024 tax bracket as compared to 2023.
Also, having a child this year may qualify you for additional deductions and credits, such as the Child Tax Credit and/or the Earned Income Credit. Both would reduce your tax liability further and may also put you in a lower tax bracket.
I hope this is helpful.
Edited 8/5/2024, 5:44 a.m.
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