Social security disability

[btagabi01]

My wife started collecting ssd this year and we file married joint.  Does this effect federal taxes?

[rjs]

Yes, your wife's Social Security disability benefits will affect your federal taxes. In January 2024 she will receive a Form SSA-1099 showing the benefits that she received in 2023. You have to enter the SSA-1099 in your tax return. In TurboTax you enter it in the section for retirement income. It's treated exactly the same as Social Security retirement benefits. Depending on your other income, anywhere from zero to 85% of her Social Security benefits will be taxable. TurboTax will calculate how much is taxable and include it in the taxable income on your tax return.

If you live in a state that has state income tax, some states tax Social Security benefits and some states do not.