Whether You Have to File Taxes on SSDI Depends on Your Total Income
You may have to file a federal tax return even though SSDI benefits themselves are not taxable income. The rule depends on whether your combined income — which includes wages, interest, dividends, and part of your SSDI — crosses a threshold set by the IRS each year. If you have no other income besides SSDI, you do not file. If you work part-time, receive a pension, or have investment income, you likely do.
The IRS counts SSDI in a formula called combined income. This is not the same as your benefit amount. Combined income equals your adjusted gross income plus nontaxable interest plus half your SSDI. If that number exceeds a certain amount, you must file. The threshold changes yearly and differs depending on whether you are single, married filing jointly, or married filing separately.
For 2024, the threshold for a single filer with SSDI is $12,550 in adjusted gross income alone, or $25,100 if married filing jointly. But if you have any other income at all, you need to add half your SSDI to that number and compare it to the IRS threshold for your filing status. This is why many SSDI recipients who work part-time end up filing even if their wages alone would not require it.
Key Takeaways
- SSDI benefits themselves are not taxable, but you must file if your combined income (adjusted gross income plus half your SSDI) exceeds the IRS threshold for your filing status.
- If SSDI is your only income and you have no wages, interest, or other earnings, you do not have to file a federal tax return.
- The IRS threshold for filing changes each year and depends on whether you are single, married filing jointly, or married filing separately.
- If you work while receiving SSDI, you almost always must file because your wages plus half your SSDI will likely exceed the threshold.
- Filing even when not required can result in a refund if taxes were withheld from wages or other income sources.
How the IRS Calculates Whether You Must File
The IRS uses a specific formula to determine if you cross the filing threshold. Start with your adjusted gross income — this includes W-2 wages, self-employment income, taxable interest, and taxable dividends. Then add any nontaxable interest (such as interest from municipal bonds). Then add half of your SSDI benefit amount. If that total is above the threshold for your filing status, you must file.
The threshold amounts are set by Congress and adjusted for inflation each year. For 2024, the threshold is $12,550 for a single person, $25,100 for married filing jointly, and $12,550 for married filing separately. These numbers are higher than the standard deduction because the IRS is specifically looking at combined income, not just earned income.
Example: You receive $1,200 per month in SSDI ($14,400 per year) and work part-time earning $8,000 in wages. Your combined income is $8,000 (wages) plus $7,200 (half of $14,400 SSDI) = $15,200. This exceeds the $12,550 threshold for a single filer, so you must file.
Filing Status and Income Thresholds for 2024
| Filing Status | Threshold for Filing | Notes |
|---|---|---|
| Single | $12,550 | Applies if you have no dependents and are not married |
| Married Filing Jointly | $25,100 | Both spouses' combined income and half their combined SSDI count toward this threshold |
| Married Filing Separately | $12,550 | Each spouse files separately; each uses the single threshold |
| Head of Household | $18,800 | Applies if you support dependents and are unmarried |
| may have access to Widow(er) | $25,100 | Available for two years after spouse's death |
When You Do Not Have to File
If SSDI is your only source of income and you have no wages, self-employment income, interest, or dividends, you do not have to file a federal tax return. This is true even if your SSDI benefit is above the standard deduction, because SSDI itself is not counted as income for tax purposes.
However, you may still want to file even if you are not required to. If your employer withheld federal income tax from your wages, filing a return is the only way to claim that refund. Similarly, if you made estimated tax payments or paid self-employment tax, filing allows you to recover overpayment.
What Happens If You Work While Receiving SSDI
Working while on SSDI creates a filing requirement in almost all cases. Even if your wages are low, adding half your SSDI to your wages will usually push you over the threshold. The Social Security Administration also monitors your work activity separately — they have their own rules about how much you can earn before your benefits are reduced or stopped — but the IRS filing requirement is independent of that.
If you are in a work incentive program such as Impairment Related Work Expenses (IRWE) or Plan to Achieve Self-Support (PASS), you still must file based on the combined income formula. These programs reduce the amount Social Security counts as earnings, but they do not change the IRS filing threshold.
How to File and Where to Report SSDI on Your Return
If you must file, you report SSDI on Form 1040 (the main federal tax return form). SSDI itself goes on line 5b, but you do not pay tax on it. The form automatically calculates whether any of your SSDI is taxable based on your combined income. If your combined income is below the threshold, none of your SSDI is taxable. If it is above the threshold, up to 85 percent of your SSDI may be taxable.
You will receive a Form SSA-1099 from Social Security each January showing your total SSDI for the previous year. Attach this form to your tax return. If you file electronically, the software will guide you through entering the SSDI amount and calculating any taxable portion automatically.
You can file on your own using tax software, through a tax preparer, or with help from a volunteer tax clinic. The IRS Volunteer Income Tax information (VITA) program offers free tax preparation for people with low to moderate income. You can find a VITA site near you at irs.gov or by calling 211.
State Taxes and SSDI
Most states do not tax SSDI benefits, but a few do. Currently, Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont tax some or all SSDI as income. The rules vary by state — some tax SSDI only if your total income exceeds a certain threshold, while others have different rules for residents over age 65.
If you live in one of these states, you may have to file a state tax return even if you do not file federally. Check your state's tax authority website or contact them directly to confirm whether you have a filing requirement. State thresholds are often lower than federal thresholds, so you could owe state taxes while owing nothing federally.
Frequently Asked Questions
Can I get a refund if I do not have to file but taxes were taken from my paycheck?
Yes. If your employer withheld federal income tax from your wages and you do not file a return, you forfeit that refund. Even if you are not required to file, you should file if taxes were withheld so you can claim the money back.
What if I received SSDI for only part of the year?
You report only the SSDI you actually received on your tax return. If you started receiving benefits in June, for example, you report only six months of benefits. The Form SSA-1099 you receive will show the exact amount for the year.
Do I have to file if I am on SSI instead of SSDI?
SSI (Supplemental Security Income) is not taxable and does not count toward the combined income threshold. However, if you have other income, you may still have to file based on that income alone. The SSDI rules do not explore to SSI.
What if I owe taxes on my SSDI?
If your combined income is high enough, up to 85 percent of your SSDI becomes taxable. You pay tax on that amount at your regular tax rate. You can arrange a payment plan with the IRS if you cannot pay in full, or request an extension to file.
Does filing taxes affect my SSDI benefits?
Filing a tax return does not change your SSDI benefit amount. Social Security and the IRS track income separately. However, if you work and earn above the SSDI work incentive limits, Social Security may reduce or stop your benefits — that is a separate rule from the tax filing requirement.