Is my social security disability taxable

[elena2426]

I usually file my taxes with Turbo Tax online, however I became disabled this year. I did receive unemployment for 6 months and then I began receiving Social Security Disability. I am a homeowner as well and I paid taxes on my home.   I am also the mother of a 16 year old son. Do I need to file taxes this year.

[jeanmeyer1957]

Ssa1019

[MichaelL1]

SSA1099

[MichaelL1 · Accepted solution]

Social Security disability benefits (SSDI) can be subject to tax, but most people do not end up paying taxes on them because they don't have much other income. About a third of Social Security disability recipients, however, do pay some taxes, because of their spouse's income or other household income.

You need to enter the SSA-1099 into TurboTax with any other income you have and TurboTax will do the calculations for you.

To enter your Social Security benefits reported on form SSA-1099

• Click on Federal Taxes
• Click on Wages and Income
• Click on I'll choose what I work on
• Scroll down to Retirement Plans and Social Security
• On Social Security (SSA-1099, RRB-1099), click the start or update button

[lisa1721]

if my husband and I both receive social security disability as our only income, will we owe taxes?

[VolvoGirl]

If you only get SS or SSDI  it is not taxable and you do not have to file a return.  And there is no benefit in claiming dependents or deductions.   Unless you have federal income taxes withheld from the benefits or you get health care insurance through one of the state marketplace exchanges and receive a Form 1095-A then you need to file a tax return.

[tigerangel7]

Sorry but you are wrong.  When Social Security sends you the SSA-1099 you can fill out the Notice 703 on the back and insert the info to see if it is Taxable.  Mine was not yet Turbo Tax put info in that taxed part of it.  I am reporting them to the IRS and Social Security for doing such since I had already done the work and NONE of the Social Security Disability should have been taxed.  I will NEVER use Turbo Tax again. 

[KBJFraizer]

I receive Disability Social Security and rent from my farm land.   When I completed Taxes in Turbo Tax I listed both of these incomes.  When taxes were complete, the Disability Social Security is only showing up on my Federal taxes and Not State of Alabama.  Only income showing for State of Alabama is my Farm Land Rent.

Is this correct?   Should it also be listed on my State of Alabama Income Tax forms as well?

[tigerangel7]

Sorry but you are wrong.  When Social Security sends you the SSA-1099 you can fill out the Notice 703 on the back and insert the info to see if it is Taxable.  Mine was not yet Turbo Tax put info in that taxed part of it.  I am reporting them to the IRS and Social Security for doing such since I had already done the work and NONE of the Social Security Disability should have been taxed.  I will NEVER use Turbo Tax again. 

[tigerangel7]

Sorry but you are wrong.  When Social Security sends you the SSA-1099 you can fill out the Notice 703 on the back and insert the info to see if it is Taxable.  Mine was not yet Turbo Tax put info in that taxed part of it.  I am reporting them to the IRS and Social Security for doing such since I had already done the work and NONE of the Social Security Disability should have been taxed.  I will NEVER use Turbo Tax again. 

[CatinaT1]

Dependent upon your other income, up to 85% of your social security (including disability) can become taxable. You will see below how to figure if you have taxable social security or you can visit IRS.gov and use the Interactive Tax Assistant tool. 

  

• Tax Formula.  Here’s a quick way to find out if a taxpayer must pay taxes on their Social Security benefits: Add one-half of the Social Security income to all other income, including tax-exempt interest. Then compare that amount to the base amount for their filing status. If the total is more than the base amount, some of their benefits may be taxable. 
    

• Base Amounts. The three base amounts are: 

  • $25,000 – if taxpayers  are single, head of household, qualifying widow or widower with a dependent child or married filing separately and lived apart from their spouse for all of the tax year 

  • $32,000 – if they are married filing jointly 

  • $0 – if they are married filing separately and lived with their spouse at any time during the year 

[VolvoGirl]

@tigerangel7   Sorry but I was not wrong.  I said if you ONLY get SS or SSDI it is not taxable.

You should not use the worksheet on the back of the SSA-1099.  It can be complicated to figure out even though it looks simple.  Turbo Tax figures it all out for you.

When you enter 1/2 of your ss on line B it is not being subtracted from anything.  It is being ADDED to ALL your other income to see if any of the ss will be taxable to you.

To see the Social Security Benefits Calculation Worksheet  in Turbo Tax Online version you would have to save your return with all the worksheets to your computer.   Or if you are using the Desktop CD/Download Software you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the right side.

Up to 85% of Social Security 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

[tigerangel7]

Stop your lies.  I used to do my own taxes at home.  I did the worksheet in the back of my husbands SS 1099 and he was NOT to be taxed.  I reported this to SS and like I said I will never use Turbo tax again.

[DawnC]

To find out whether any of your benefits shown on Forms SSA-1099 and RRB-1099 may be taxable, compare the base amount for your filing status with the total of:

1. One-half of your benefits; plus

2. All your other income, including tax-exempt interest.

Exclusions

When making this comparison, don’t reduce your other income by any exclusions for:

• Interest from qualified U.S. savings bonds,

• Employer-provided adoption benefits,

• Interest on education loans,

• Foreign earned income or foreign housing, or

• Income earned by bona fide residents of American Samoa or Puerto Rico

See IRS Publication 915 - Whether or not your Social Security income is taxable depends on your total income, including your Social Security plus any other income. Generally speaking, if your only income is Social Security, you probably don't make enough money to be required to file a federal tax return.   

TurboTax Video   @tigerangel7 - You can enter the same information you entered into TurboTax into the IRS Interactive Tax Assistant to verify.    

[VolvoGirl]

Are you filing a Joint return or separate returns?  The taxable amount of SSA-1099 depends on all the other income on a Joint return including yours.  Maybe it wasn't taxable in the past but is this year. 

Check the worksheet to see how and why Turbo Tax is making some of it taxable.  To see the Social Security Benefits Calculation Worksheet  in Turbo Tax Online version you would have to save your return with all the worksheets to your computer.   Or if you are using the Desktop CD/Download Software you can switch to Forms Mode (click Forms in the upper right) and click on SS in the list on the left side.

And are you looking at the actual 1040 line 6b?  If you are looking at a summary screen or review screen those show the full amount as income and lump a lot of stuff together. You need to check the actual 1040 form and make sure it's right. 

See IRS 1040 Instructions Page 28 and the worksheet on 31

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf