You may have to file taxes even if your only income is SSDI, depending on how much you received and whether you have other income sources.
The Internal Revenue Service (IRS) treats Social Security Disability Insurance (SSDI) payments differently than wages. Whether you file a tax return depends on your total income for the year, your filing status, and whether you have non-SSDI income. Some people with SSDI owe no federal income tax and do not have to file. Others must file because they have earnings from work, interest, or other sources—even if those earnings are small. A third group does not owe tax but should file anyway to claim refundable tax credits like the Earned Income Tax Credit (EITC).
The IRS does not automatically know your SSDI amount or your other income. You are responsible for determining whether you cross the filing threshold. If you do not file when required, you may face penalties and lose the chance to claim credits that would return money to you.
Key Takeaways
- You must file a federal tax return if your total income (including SSDI plus any wages, self-employment income, or unearned income) exceeds the threshold for your filing status, which varies by age and marital status.
- Up to 85 percent of your SSDI benefits may be taxable if you have income from other sources, but many people with SSDI alone pay no federal income tax.
- You should file even if you do not owe tax if you had income taxes withheld from paychecks or if you may be owed the Earned Income Tax Credit or other refundable credits.
- The Social Security Administration sends Form SSA-1099 by January 31 each year, showing your total SSDI payments; use this to calculate whether you must file.
- State income tax rules differ from federal rules, so you may have to file a state return even if you do not file federally, or vice versa.
How the IRS counts SSDI income
SSDI is not automatically taxable the way wages are. Instead, the IRS uses a formula called combined income to decide whether any of your SSDI is taxable. Combined income equals your adjusted gross income (AGI) plus nontaxable interest plus half of your SSDI benefits.
If your combined income is below a certain threshold, none of your SSDI is taxable. If it exceeds the threshold, up to 50 percent of your benefits may be taxable. If it exceeds a higher threshold, up to 85 percent may be taxable. The thresholds depend on your filing status and have not changed since 1984, so they affect more people now than they did decades ago.
Example: You received $12,000 in SSDI and earned $8,000 from part-time work. Your combined income is $8,000 + $0 (no nontaxable interest) + $6,000 (half of $12,000 SSDI) = $14,000. If you are single, the first threshold is $25,000, so none of your SSDI would be taxable. But if you also had $15,000 in nontaxable interest, your combined income would be $8,000 + $15,000 + $6,000 = $29,000, which exceeds $25,000, and some of your SSDI would be taxable.
Filing thresholds for different situations
Whether you must file depends on your total income (not just SSDI) and your filing status. The IRS sets a standard deduction each year—the amount of income you can earn before you owe federal tax. If your total income is below your standard deduction, you do not have to file. If it meets or exceeds your standard deduction, you must file.
| Filing Status | Standard Deduction (2024) | Must File If Total Income Is |
|---|---|---|
| Single, under 65 | $14,600 | $14,600 or more |
| Single, 65 or older | $18,350 | $18,350 or more |
| Married filing jointly, both under 65 | $29,200 | $29,200 or more |
| Married filing jointly, one 65 or older | $30,550 | $30,550 or more |
| Married filing jointly, both 65 or older | $31,900 | $31,900 or more |
| Head of household, under 65 | $21,900 | $21,900 or more |
| Head of household, 65 or older | $25,650 | $25,650 or more |
Total income includes SSDI, wages, self-employment income, interest, dividends, rental income, and other sources. It does not include Supplemental Security Income (SSI), which is a different program and is never taxable.
These thresholds change each year. The IRS publishes updated amounts in the fall for the following tax year. Check the IRS website or your tax software for the current year's standard deduction before deciding whether to file.
When you should file even if you do not have to
You may not be required to file but should file anyway if you had federal income tax withheld from paychecks or other payments during the year. When you file, you report what you actually owe. If more was withheld than you owe, the IRS returns the difference to you as a refund. Without filing, that money stays with the government.
You should also file if you may be owed a refundable tax credit, most commonly the Earned Income Tax Credit (EITC). The EITC is a credit for people with low to moderate income from work. You only receive it if you file a return claiming it—the IRS does not send it automatically. If you had any earned income (wages or self-employment income) during the year, you may may have access to even if your total income is below the filing threshold.
Other refundable credits include the Additional Child Tax Credit and the American Opportunity Tax Credit. These also require you to file to receive them. If you are unsure whether you may have access to for any credits, filing costs nothing and may return money to you.
How to determine your SSDI income for tax purposes
The Social Security Administration sends you Form SSA-1099 by January 31 each year. This form shows the total SSDI benefits you received in the previous calendar year. You use this amount to calculate your combined income and determine whether any of your SSDI is taxable.
Keep your SSA-1099 with your tax records. If you file electronically or on paper, you may need to report the amount from this form. Some tax software asks you to enter your SSDI amount directly; others ask for the SSA-1099 form number and amount.
If you did not receive an SSA-1099, contact the Social Security Administration at 1-800-772-1213 or visit ssa.gov to request a replacement. Do not estimate your SSDI amount—use the official form.
State income tax and SSDI
Federal tax rules and state tax rules are separate. Some states do not tax SSDI at all. Others tax it the same way the federal government does. A few states have their own rules that differ from both federal law and other states.
You may have to file a state return even if you do not file federally, or vice versa. Your state's revenue or taxation department publishes its own filing requirements and standard deduction amounts. If you live in a state with income tax, check your state's website or contact the state tax authority to learn whether you must file and whether SSDI is taxable in your state.
If you moved during the year or lived in more than one state, you may have to file returns in multiple states. This is rare for people on SSDI alone, but it can happen if you had wages or other income.
What happens if you do not file when required
If you owe tax and do not file, the IRS may assess a failure-to-file penalty. This penalty is usually 5 percent of the unpaid tax for each month the return is late, up to 25 percent. Interest also accrues on any unpaid tax. These penalties and interest add to what you owe.
If you do not file but are owed a refund, there is no penalty, but you lose the refund after three years. For example, if you were owed $400 in 2021 but did not file until 2025, you cannot claim that refund. Filing late to claim a refund is still worth doing if you are within the three-year window, but do not wait longer than that.
If you are unsure whether you owe tax, filing is the safest choice. If you cannot afford to pay what you owe, you can still file and work out a payment plan with the IRS. Filing on time, even without payment, is better than not filing.
Frequently Asked Questions
Do I have to report SSDI on my taxes if it is my only income?
Not necessarily. If SSDI is your only income and the total is below your standard deduction for your filing status and age, you do not have to file. For example, if you are single and under 65, your standard deduction is $14,600. If you received $12,000 in SSDI and nothing else, you would not have to file. However, if you had any other income—even $100 in interest—you might have to file.
What if I worked part-time while receiving SSDI?
Your total income (SSDI plus wages) determines whether you must file. Add your SSDI from Form SSA-1099 to your wages. If the total meets or exceeds your standard deduction, you must file. You should also file if taxes were withheld from your paychecks, because you may get a refund. Note that SSDI has its own earnings limit—if you earn too much, your SSDI payment is reduced—but that is separate from the tax filing question.
Can I file my taxes myself, or do I need a tax preparer?
You can file yourself using free tax software if your income is below a certain threshold (usually around $79,000 for 2024). The IRS Free File program offers free software to people who may have access to. If your situation is more complex, a tax preparer or CPA can help. Some nonprofits offer free tax preparation to people with low income; search for "VITA" (Volunteer Income Tax information) sites in your area.
What if I received SSDI for only part of the year?
Your SSA-1099 will show only the benefits you actually received. Use that amount to calculate your combined income and determine your filing requirement. If you started or stopped receiving SSDI mid-year, the form reflects the actual payments you got.
Do I have to file if I owe no tax but had taxes withheld?
You do not have to file, but you should. If taxes were withheld from your income, filing allows you to claim a refund of the overpayment. You may also be owed tax credits like the EITC. Filing takes time but can return money to you.