Yes, you must file taxes if your income exceeds the threshold, even on disability
Whether you file taxes depends on how much money you received that year and what type of income it was. Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) are treated differently by the IRS, and the rules change based on your total income from all sources.
If you received only SSDI or only SSI and had no other income, you typically do not file a federal tax return. But if you have earnings from work, interest, dividends, or other income alongside your benefits, you may owe taxes. The IRS has specific income thresholds that determine whether filing is required.
The safest approach is to calculate your total income for the year and compare it to the IRS thresholds. If you are close to the limit or unsure, filing anyway protects you from penalties and may result in a refund if taxes were withheld.
Key Takeaways
- SSDI benefits are not taxable on their own, but other income you received that year may push you over the filing threshold.
- SSI benefits are never taxable, but SSI recipients with other income must still file if that income exceeds the threshold.
- The IRS filing threshold depends on your age, filing status, and whether you have earned income or unearned income like interest.
- If you file taxes, you report SSDI on line 5b of Form 1040 but do not include it in your taxable income.
- Keeping records of your benefit statements and all other income sources makes filing simpler and protects you in case of an audit.
How SSDI and SSI are treated differently for tax purposes
SSDI benefits themselves are not taxable income. However, a portion of your SSDI may become taxable if your total income (including SSDI, wages, interest, and other sources) exceeds a certain amount. The IRS calls this "combined income," and it is calculated by adding your adjusted gross income, nontaxable interest, and half of your SSDI benefits.
SSI benefits are never taxable, no matter how much other income you have. If SSI is your only income source, you do not file a federal return. But if you have wages, self-employment income, or other earnings, you must file if that income alone exceeds the threshold for your filing status.
The distinction matters because SSDI recipients with other income may owe taxes, while SSI recipients only file because of non-SSI income. A person receiving both SSDI and SSI should treat the SSI portion as nontaxable and calculate combined income using only the SSDI portion.
IRS filing thresholds for 2024
The IRS sets different thresholds based on your age and filing status. These amounts change each year. For 2024, here are the basic thresholds for when you must file a federal return:
| Filing Status | Age | Gross Income Threshold |
|---|---|---|
| Single | Under 65 | $14,600 |
| Single | 65 or older | $18,350 |
| Married filing jointly | Both under 65 | $29,200 |
| Married filing jointly | One spouse 65 or older | $30,750 |
| Married filing jointly | Both 65 or older | $32,300 |
| Head of household | Under 65 | $18,500 |
| Head of household | 65 or older | $23,200 |
These thresholds explore to gross income, which includes wages, self-employment income, interest, and dividends. SSDI is not counted in gross income for this purpose, but it is counted in the "combined income" calculation that determines whether part of your SSDI becomes taxable.
If your gross income is below the threshold for your status and age, you do not have to file. However, if you had taxes withheld from wages or other income, filing may result in a refund even if you are not required to file.
When part of your SSDI becomes taxable
If your combined income exceeds a base amount set by the IRS, you may have to include part of your SSDI as taxable income. Combined income is calculated as: adjusted gross income + nontaxable interest + half of your SSDI benefits.
For 2024, the base amounts are $25,000 for single filers and $32,000 for married couples filing jointly. If your combined income exceeds these amounts, up to 50 percent of the excess (or up to 85 percent of your benefits in some cases) becomes taxable.
This calculation is complex, and the IRS provides a worksheet in the instructions for Form 1040 to help you determine the taxable portion. Many people in this situation benefit from using tax software or consulting a tax professional to may support accuracy.
Documents you need to file taxes on disability
Gather these documents before you begin:
- Form SSA-1099-SM or Form SSA-1099-SB: Social Security sends this to you by January 31 each year. It shows the total SSDI or SSI you received. Keep it with your tax records.
- Form W-2 or 1099 forms: If you worked during the year, your employer sends a W-2. If you had self-employment income, interest, or dividends, you receive 1099 forms from the source.
- Proof of estimated tax payments: If you made quarterly estimated tax payments, have those records ready.
- Records of tax withholding: If your employer or another source withheld taxes, you need documentation of those amounts.
- Receipts for deductions: If you itemize deductions, gather receipts for medical expenses, charitable donations, or other deductible items.
The Social Security Administration (SSA) mails Form SSA-1099 statements to all beneficiaries, whether or not they file taxes. If you do not receive yours by early February, contact SSA at 1-800-772-1213 or visit ssa.gov to request a replacement.
How to report SSDI on your tax return
If you file Form 1040, SSDI appears on line 5b. You report the full amount of SSDI you received, but you do not automatically add it to your taxable income. Instead, you use the IRS worksheet to determine whether any portion is taxable based on your combined income.
If none of your SSDI is taxable (because your combined income is below the base amount), you enter the full amount on line 5b but do not include it in your total income. If part of it is taxable, you calculate the taxable portion using the worksheet and enter only that amount in the income section of your return.
SSI does not appear on Form 1040 at all. You only report other income you received, such as wages or interest. If your only income was SSI, you do not file a federal return unless you had other income sources.
Filing options and where to get help
You can file taxes on your own using tax software, through a tax professional, or with help from a free community program. The IRS offers free filing software through its Free File program if your income is below a certain threshold (which varies by year). Visit irs.gov/freefile to see if you may have access to.
If you prefer in-person help, the IRS operates Volunteer Income Tax information (VITA) sites in most communities. VITA provides free tax preparation for people with low to moderate income. You can find a site near you at irs.gov/vita or by calling 211.
A tax professional or certified public accountant (CPA) can handle your return for a fee. This option is useful if your situation is complex — for example, if you have self-employment income, rental income, or significant deductions. Some disability advocacy organizations also offer tax help to beneficiaries at no cost.
Frequently Asked Questions
Do I have to file taxes if I only received SSDI and had no other income?
No. If SSDI was your only income source in 2024, you do not have to file a federal return. However, if you had taxes withheld from your benefits or from any other source, filing may result in a refund.
What happens if I do not file when I should have?
If you owed taxes and did not file, the IRS may assess penalties and interest on the unpaid amount. If you are owed a refund, you have three years to claim it; after that, the refund is forfeited. Filing late is better than not filing at all.
Can I file taxes if I am receiving both SSDI and SSI?
Yes. Treat the SSI portion as nontaxable and calculate combined income using only your SSDI. Report both amounts on your benefit statement, but only the SSDI factors into the combined income calculation for determining if part of your benefits is taxable.
Will filing taxes affect my SSDI or SSI benefits?
Filing a tax return does not change your SSDI benefits. SSI benefits can be affected by income, but tax filing itself does not trigger a benefit reduction — the underlying income does. Report any work income to SSA separately through the work incentive programs if you are working.
Where do I report income from work while on disability?
Report work income on your tax return as wages (Form W-2) or self-employment income (Schedule C). You must also report work income to SSA if you are receiving SSI, as it affects your monthly benefit amount. SSDI has different rules; contact SSA about work incentive programs that may allow you to work without losing benefits.