Social Security Disability and Taxes

Q: I thank you for read­ing this. Is Social Secu­rity Dis­abil­ity tax­able or is it exempt? Thanks.

– Ralph

A: Good ques­tion. How about “maybe” as a defin­i­tive answer? Two types of gov­ern­ment ben­e­fits include SSDI (social secu­rity dis­abil­ity insur­ance) and SSI (sup­ple­men­tal secu­rity income). SSDI pro­vides income for the dis­abled while SSI may pro­vide addi­tional income for the dis­abled or elderly folks who demon­strate finan­cial need. SSI is not tax­able, but SSDI is tax­able under the same rules as social secu­rity retire­ment. Check out IRS Pub­li­ca­tion 915for more information.

So in a nut­shell, if you don’t have any other income, your SSDI should not be tax­able. How­ever, if you do have income from other sources, such as invest­ments, mil­i­tary retire­ment, part-time work, etc., taxes could be due. Basi­cally, if half of your social secu­rity plus all of your other income is more than $25,000 (sin­gle) or $32,000 (mar­ried fil­ing jointly), a por­tion of your ben­e­fits will be taxable.

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9 responses to “Social Security Disability and Taxes”


  2. is mil­i­tary dis­abil­ity dis­abil­ity pay­ments tax exempt???

  3. “is mil­i­tary dis­abil­ity pay­ments tax exempt???” VA dis­abil­ity pay­ments are tax-free!

  4. While receiv­ing social secu­rity dis­ablity ben­e­fits if you con­cur­rently receive a 401 K or ESOP (employer funded) dis­tri­b­u­tion would this halt or reduce social secu­rity dis­ablity benefits?

  5. Can or would my spouse be able to claim me (ssdi) as a depen­dant? If so, how and would her income be a fac­tor?
    Post Script: Fam­ily of five; income under 50k

  6. Is SSDI still tax­able if you were dis­abled in com­bat? I thought I read it wasnt but cant find it now

  7. Is it required to report and claim Vet­er­ans DIC on taxes and FASFA forms?

  8. Do you have to report and claim vet­eran dis­abil­ity pay­ments on your taxes?

    1. Gen­er­ally speak­ing, Vet­er­ans Ben­e­fits are not tax­able income. How­ever, your sit­u­a­tion could be dif­fer­ent. I would con­sult with your tax advisor.

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