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Level 5

Can taxable SSD effect my Tax Bracket?

I understand how/if Social Security Disability is taxed.

  • ~50% Taxable if:  half SSD + AGI > $25,000
  • ~85% Taxable if:  half SSD + AGI > $34,000


My question is:  if my SSD is taxed (let's say 85%), will that taxable amount be added to my total AGI thus (potentially) increasing my tax bracket?  Or, is that 85% just taxed at my current tax bracket based on other income?


For example, filing single:

  • if adjusted gross income is $30,000 putting me in the 12% tax bracket
  • and if SSD is $28,000 (half: $14,000); therefore 85% taxable because $14,000+$30,000 is greater than $34,000.
  • 85% Taxable SSD would then be $23,800.
  • Question:  Is that $23,800 also taxed at 12%, or is it added to the $30,000 which would bump me into the 22% tax bracket for the amount above $38,700?

Thank you,



1 Reply
Employee Tax Expert

Can taxable SSD effect my Tax Bracket?

Hi Drew!  It could bump you into the next tax bracket.  But, the tax rates are a tiered system, so only the amount above the previous income/tax bracket will be taxed at the next level of tax rate.  You can find those tax brackets with income ranges/rates at this FAQ.  What are the federal tax rates for 2018?