Please see this FAQ for detailed info: https://www.disabilitybenefitscenter.org/how-to/social-security-disability-taxes
Social Security Disability payments aren't always taxable. If you do not make more than $25,000 a year and file as an individual or your household income is less than $32,000 per year and you file jointly, you will not have to pay taxes on your Social Security Disability benefits. If your income exceeds those limits, a portion of your disability payments may indeed be taxable.
The bad news is that, you may have to pay taxes on your disability benefits if your income exceeds a certain amount. The good news is that you will never have to pay tax on all of your disability benefits. In fact, no matter how much you make, you will never have to pay taxes on more than 85 percent of your Social Security Disability income. The limits are as follows:
- If you earn more than $25,000 but less than $34,000 and file as an individual or more than $32,000 but less than $44,000 and file jointly, then fifty percent of your disability income will be taxable.
- If you earn more than $34,000 if filing as an individual or more than $44,000 if filing jointly, then you will need to pay taxes on eighty-five percent of your disability income.
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