You may have to file taxes even though you receive SSDI
Whether you file taxes depends on how much money you have beyond your SSDI benefit. SSDI itself is not taxed as income. But if you have other earnings—from work, investments, or other sources—you may cross a threshold that requires you to file a federal tax return. The IRS calls this your "combined income," and it includes your SSDI benefit plus half of it, plus any other income you report.
The threshold changes each year and depends on your filing status. A single person with only SSDI and no other income will not file. A single person with SSDI plus $200 in wages might have to. The exact point where filing becomes required is set by the IRS each tax year, so the dollar amount you need to know changes annually.
Key Takeaways
- SSDI benefits themselves are not taxable income, but other earnings you have count toward whether you must file.
- The IRS uses "combined income" to decide if you file—this includes half your SSDI plus all other income sources.
- Filing thresholds vary by year and by filing status (single, married, head of household), so you cannot use last year's number to decide this year.
- If you work part-time or have investment income while on SSDI, you almost certainly need to file, even if you owe no tax.
- Filing can sometimes lower your tax bill or earn you a refund through credits like the Earned Income Tax Credit.
How the IRS counts your income when you receive SSDI
The IRS does not count your SSDI benefit as taxable income by itself. But it does count it in a formula called "combined income" to decide whether you have to file. Combined income is half your SSDI benefit plus all your other income—wages, self-employment income, interest, dividends, and certain other sources.
For example: if you receive $1,200 per month in SSDI ($14,400 per year) and earn $8,000 from part-time work, your combined income is $7,200 (half of $14,400) plus $8,000, which equals $15,200. That combined income figure is what the IRS compares to the filing threshold for your situation.
This formula applies only to people who receive Social Security benefits—either SSDI or retirement benefits. If you do not receive Social Security, the IRS uses a simpler rule based only on your earned and unearned income.
Filing thresholds for SSDI recipients in 2024
The IRS sets filing thresholds each year. For 2024, the thresholds for people who receive Social Security are:
| Filing Status | Combined Income Threshold |
|---|---|
| Single | $14,600 |
| Married filing jointly (both receive Social Security) | $23,200 |
| Married filing jointly (only one receives Social Security) | $18,450 |
| Married filing separately (either receives Social Security) | $1 |
| Head of household | $18,450 |
If your combined income is above the threshold for your filing status, you must file a federal tax return. These thresholds rise slightly each year, so check the IRS website or your tax software for the current year's numbers before you decide whether to file.
When you have work income alongside SSDI
If you work while receiving SSDI, you almost certainly have to file a tax return. Even a small amount of wages pushes most people over the combined income threshold. You will need to report your W-2 wages or self-employment income on your return.
Filing is especially important if you work because you may be due a refund or a tax credit. The Earned Income Tax Credit (EITC) can reduce your tax bill or give you money back, and you can only claim it by filing. Some people with SSDI and part-time work owe no federal tax but still file to claim the EITC.
You should also know that SSDI has its own work rules separate from taxes. The Social Security Administration tracks your earnings and may adjust or suspend your benefit if you earn above a certain amount. Those rules are different from tax filing rules, so you need to report your work to both Social Security and the IRS.
Investment income and other sources of money
If you have interest from a savings account, dividends from investments, rental income, or other unearned income, that counts toward your combined income for the IRS threshold. Even small amounts add up quickly. Interest of $500 plus SSDI of $14,400 (half = $7,200) gives you combined income of $7,700, which is below the 2024 single threshold of $14,600. But interest of $8,000 plus the same SSDI pushes you to $15,200, which requires filing.
If you receive income from a pension, annuity, or retirement account withdrawal, that also counts. The key is that almost any money you receive beyond SSDI goes into the combined income calculation.
What happens if you do not file when you should
If your combined income is above the threshold and you do not file, the IRS may eventually contact you. They may assess a penalty for not filing, though the penalty is usually small if you owe no tax or are due a refund. If you are due a refund, there is no penalty for filing late, but you lose the refund if you wait too long—the IRS keeps refunds after three years.
Filing late can also delay any tax credits you are due, including the EITC. If you realize you should have filed in a previous year, you can still file that return. Many people file several years of back returns without serious consequences, especially if they owe nothing or are due money back.
How to file your taxes with SSDI income
You file your SSDI taxes the same way anyone else files—using Form 1040 or a shorter form if you may have access to. You will report your SSDI benefit on line 5b of Form 1040, even though it is not taxable. You will also report any other income you have: wages on line 1, self-employment income on Schedule C, interest on Schedule B, and so on.
Many tax software programs (including free versions offered by the IRS) walk you through the process and ask you directly about SSDI. If you use a tax preparer, tell them you receive SSDI so they use the correct threshold to decide whether you file. Some nonprofits and senior centers offer free tax preparation for people with low to moderate income, and they are familiar with SSDI rules.
Frequently Asked Questions
Do I have to file taxes if I only receive SSDI and no other income?
No. If SSDI is your only income, you do not file a federal tax return. SSDI is not taxable, and you have no other income to report. You only file if you have other earnings or income sources that push your combined income above the IRS threshold for your filing status.
What if I earned money from work but it was less than the threshold?
You still may need to file. The IRS threshold for people on SSDI includes half your benefit plus all your other income. Even if your wages alone are below the threshold, adding half your SSDI to them might push you over. Use the combined income formula to check: half your annual SSDI plus your wages. If that total exceeds the threshold for your filing status, you file.
Can I get a refund if I file taxes on SSDI?
Yes. If you have taxes withheld from wages or make estimated tax payments, you may be due a refund. You may also may have access to for the Earned Income Tax Credit or other credits that result in a refund. You only receive these refunds by filing a return.
Does filing taxes affect my SSDI benefit amount?
Filing a tax return does not change your SSDI benefit. However, the Social Security Administration tracks your work earnings separately from the IRS. If you earn above Social Security's work limit, your benefit may be reduced or suspended. That is a Social Security rule, not a tax rule, so you need to report earnings to both agencies.
What if I am married and my spouse does not receive SSDI?
If you file jointly, your combined income threshold is $18,450 for 2024. Your spouse's income counts toward that threshold along with your combined income (half your SSDI plus your other income). If you file separately, the threshold for you is $1, which means you almost certainly have to file if you have any income at all.