SSDI question

Forum|Forum|4 years ago
August 15, 2021
5 replies
43 views

I thought SSDI was taxed at a lower rate than regular SS but I don't see any distinction between them in TurboTax for 2020. Can someone clarify that for me?

TurboTax Basic Windows

DoninGA

Level 15

Up to 85% of Social Security Retirement/Disability/Survivors benefits becomes taxable when all your other income plus 1/2 your social security reaches:

Married Filing Jointly - $32,000
Single or Head of Household - $25,000
Married Filing Separately - 0

arcticrangerAuthor

Level 2

I do exceed that $25000 threshold. Does TT automatically detect and calculate the correct percentage that is taxable?

rjs

Level 15

SSDI is taxed exactly the same as Social Security retirement benefits. There is no distinction in TurboTax because there is no distinction in the tax law. I don't know where you got the impression that they are treated differently.

@arcticranger wrote:

Does TT automatically detect and calculate the correct percentage that is taxable?

Yes, you enter the full amount from box 5 of your Form SSA-1099. TurboTax automatically calculates the taxable amount. On Form 1040 the total amount that you received is on line 6a and the taxable amount is on line 6b. You can see the calculation on the Social Security Benefits Worksheet.