Most people on SSDI do not file a tax return, but some do

Whether you file taxes depends on how much income you have and what kind of income it is. SSDI payments themselves are not taxable income — you do not report them on your federal tax return. But if you have other income (wages from work, interest, pensions, or other benefits), you may have to file even though your SSDI is not counted.

The IRS has income thresholds that determine who must file. These thresholds change each year and depend on your age and filing status. If your total income from all sources falls below the threshold for your situation, you do not have to file. If it is above the threshold, you do.

The tricky part is that SSDI itself does not count toward the threshold, but other money you receive does. This means you could have a modest SSDI check and still be required to file if you have even a small amount of other income.

Key Takeaways

  • SSDI payments are not taxable and do not get reported on your tax return.
  • You must file taxes if your non-SSDI income exceeds the IRS threshold for your age and filing status, even if SSDI is your main source of money.
  • Other income that counts toward the filing threshold includes wages, self-employment income, interest, dividends, pensions, and some other benefits.
  • The IRS threshold amounts change yearly, so you should check the current year's rules or ask a tax preparer if you are unsure whether you have to file.

What income counts and what does not

SSDI is excluded from taxable income by federal law. This applies to the full amount of your monthly SSDI payment, no matter how much you receive. You will not see SSDI on a tax form, and you do not calculate it into your filing decision.

Other income does count. If you work and earn wages, that counts. If you have a job and earn self-employment income, that counts. Interest from a bank account, dividends from investments, rental income, and income from a pension or annuity all count. Some other government benefits also count — for example, unemployment benefits and certain railroad retirement payments.

Supplemental Security Income (SSI), which is different from SSDI, is also not taxable. But if you receive both SSDI and SSI, you still follow the same rule: only non-SSDI, non-SSI income matters for deciding whether to file.

The IRS filing threshold for 2024

For 2024, the threshold depends on your age and whether you are single, married filing jointly, or in another filing status. A single person under 65 must file if their income is $14,600 or more. A single person 65 or older must file if their income is $18,350 or more. These amounts are for federal taxes only and do not include SSDI.

If you are married filing jointly and both spouses are under 65, the threshold is $29,200. If one spouse is 65 or older, it is $30,750. If both are 65 or older, it is $32,300.

These numbers change each year, usually increasing slightly. The IRS publishes updated thresholds in January of each year. If you are not sure which category you fall into, a tax preparer or your local IRS office can tell you whether you have to file based on your specific situation.

When you should file even if you do not have to

Even if your income is below the filing threshold, you may want to file anyway. If you had taxes withheld from wages or made estimated tax payments during the year, filing a return is how you get that money back. The IRS will not return it automatically.

You may also benefit from filing if you are due a tax credit. The Earned Income Tax Credit (EITC) is available to people with low to moderate income, and you must file to claim it. Some other credits also require you to file.

If you are unsure whether filing would help you, a free tax preparation service in your area can review your situation. The IRS Volunteer Income Tax information (VITA) program offers free tax help to people with low to moderate income.

How to report other income on your return

If you do file, you report your non-SSDI income on the standard forms. Wages go on Form 1040 and Schedule 1. Self-employment income goes on Schedule C. Interest and dividends go on Schedule B. Each type of income has its own place on the return.

You will receive forms from the sources of your income. If you worked, your employer sends a W-2. If you have interest or dividends, your bank or investment company sends a 1099. You use these forms to fill out your tax return or give them to a tax preparer.

The key point is that you leave SSDI off entirely. Do not try to report it, do not list it as income, do not include it anywhere. It straightforward does not appear on your return.

What happens if you do not file when you should

If your income is above the threshold and you do not file, the IRS may contact you. They may assess a penalty for not filing. The penalty is usually a percentage of the taxes you owe, and it increases the longer you wait.

If you realize you should have filed in a previous year, you can still file that return. The IRS generally allows you to file back returns for up to three years if you are due a refund, and longer if you owe taxes. Filing late is better than not filing at all, especially if you had taxes withheld and are due a refund.

If you are worried about a past year, a tax preparer or the IRS can help you figure out what to do. Many people in this situation find that filing the late return actually results in a refund, which makes the process less stressful.

Where to get help with your specific situation

The IRS website (irs.gov) has a tool called the Interactive Tax Assistant that can help you figure out whether you have to file. You answer questions about your income and filing status, and it tells you whether filing is required.

If you prefer to talk to someone, VITA programs offer free tax help. You can find a VITA site near you by calling 211 or visiting the IRS website. Tax preparation is free, and the volunteers are trained to handle situations like yours.

A tax preparer or accountant can also review your situation and tell you what you need to do. Many offer free initial consultations, and some offer reduced rates for people with low income.

Frequently Asked Questions

Do I have to report SSDI on my tax return at all?

No. SSDI is not taxable income, so it does not appear anywhere on your federal tax return. You do not list it, report it, or include it in any calculation. Only your other income matters for deciding whether to file.

What if I work part-time and receive SSDI?

Your wages from work count toward the filing threshold, but your SSDI does not. If your wages are above the threshold for your age and filing status, you must file. SSDI does not reduce the amount you have to earn before filing becomes required.

Do I need to file if I only receive SSDI and no other income?

No. If SSDI is your only income, you have zero taxable income, which is below the filing threshold. You do not have to file unless you want to claim a tax credit or get a refund of withheld taxes.

Will filing taxes affect my SSDI payments?

Filing a tax return does not change your SSDI. Social Security and the IRS are separate systems. Reporting your income to the IRS does not affect how much SSDI you receive, and it does not trigger a review of your case.

What if I am not sure whether my income is above the threshold?

Use the IRS Interactive Tax Assistant on irs.gov, call VITA for a free consultation, or speak with a tax preparer. They can look at your specific numbers and tell you whether you have to file. It is better to ask than to guess wrong.