What an SSDI tax statement is and why you receive one

An SSDI tax statement is a form Social Security sends you each January that reports how much you received in benefits during the previous year. The form is called a SSA-1099 (or sometimes an SSA-1042S if you are not a U.S. citizen). You receive it whether or not any of your benefits are taxable — Social Security sends it to everyone who got SSDI payments.

The statement exists so you and the IRS have the same record of what you were paid. When you file your tax return, you use the amount on this form to report your SSDI income. The IRS then checks that your return matches what Social Security reported.

You do not need to do anything when you receive the statement. It is purely informational at that stage. You only use it when you sit down to file your taxes or when you are deciding whether you need to file at all.

Key Takeaways

  • Social Security mails you an SSA-1099 or SSA-1042S each January showing your total SSDI benefits from the previous year.
  • Receiving a tax statement does not mean your benefits are taxable — you may owe no tax on SSDI even though you received the form.
  • You use the amount on your tax statement to report SSDI income on your federal tax return if you are required to file.
  • The threshold for whether you must file depends on your total income from all sources, not just SSDI.
  • Some states do not tax SSDI at all, while others tax it under the same rules as the federal government.

When you actually owe tax on SSDI

Whether your SSDI is taxable depends on your combined income — a calculation that includes SSDI plus other money you received. The IRS defines combined income as half your SSDI benefits plus all your other income (wages, interest, rental income, and so on).

If your combined income is below a certain threshold, none of your SSDI is taxable. Those thresholds are $25,000 for a single filer and $32,000 for married filing jointly. These thresholds have not changed since 1984, so they do not adjust for inflation each year.

If your combined income is above the threshold, you may owe tax on up to 85 percent of your SSDI benefits. The exact amount depends on how far above the threshold you are. For most people receiving only SSDI with little other income, the benefits remain untaxed.

Your tax statement shows your gross SSDI amount, but it does not calculate whether you owe tax. That is your responsibility or your tax preparer's responsibility when you file your return.

How to read your SSA-1099 or SSA-1042S

The SSA-1099 is a one-page form. The most important box is Box 5, which shows your total SSDI benefits for the year. This is the number you will need when you file your taxes. Other boxes show federal income tax withheld (if any) and your Social Security number.

If you received a SSA-1042S instead, you are a non-citizen and the form is slightly different, but Box 5 still contains your total benefits. The form may also show tax withheld under U.S. tax treaties.

Keep your tax statement with your tax records for that year. You do not mail it to the IRS, but you may need to refer to it if the IRS ever questions your return.

What to do if you do not receive a tax statement

Social Security mails tax statements in January, usually by mid-month. If you have not received yours by early February, contact Social Security directly. You can call 1-800-772-1213 (TTY 1-800-325-0778) or visit your local Social Security office.

You can also create a my Social Security account online at ssa.gov and view your tax statement there. This is often faster than waiting for the mail version. You can print it or read it as a PDF.

If you moved during the year and Social Security does not have your current address, the statement may have gone to your old address. Update your address with Social Security as soon as you can so future statements reach you.

Using your tax statement when you file

When you file your federal tax return, you will report your SSDI on the appropriate line of your form (usually Form 1040, line 5b). You use the amount from Box 5 of your tax statement. If you use tax software, you enter this number when prompted for SSDI income.

The software or your tax preparer will then calculate whether any of your benefits are taxable based on your combined income. If you are below the threshold, the taxable amount is zero. If you are above it, the software calculates the taxable portion.

If you received federal income tax withholding on your SSDI (shown in Box 4 of your statement), that amount is credited against your total tax owed. Some people have enough withheld that they receive a refund even though they owed tax on their benefits.

State tax statements and state-specific rules

Your SSA-1099 is a federal tax document. Some states use it to tax SSDI under their own rules, while others do not tax SSDI at all. A few states tax SSDI differently than the federal government does — for example, taxing it at a lower threshold or not at all.

When you file your state tax return, check your state's instructions for how to report SSDI. Some states have a separate line for SSDI income; others include it with all other income. A handful of states do not require you to file a state return at all if SSDI is your only income.

Your state tax agency's website will have instructions specific to your state. If you are unsure, contact your state's department of revenue or a local tax preparer who knows your state's rules.

If you think your tax statement is wrong

If the amount on your tax statement does not match what you believe you received, contact Social Security before you file your taxes. Errors do happen — a payment may have been recorded under the wrong year, or a payment you did not receive may be listed.

Call 1-800-772-1213 or visit your local Social Security office with your statement and any payment records you have (bank statements, letters from Social Security, etc.). Social Security can correct the statement and send you a corrected form if needed.

Do not ignore a discrepancy. If you file your return with an amount that does not match Social Security's records, the IRS may contact you later asking for an explanation. It is much easier to fix it now.

Frequently Asked Questions

Do I have to file a tax return if I only receive SSDI?

Not necessarily. You only have to file if your total income (including half your SSDI) exceeds the standard deduction for your filing status. For 2024, the standard deduction is $14,600 for a single person and $29,200 for married filing jointly. If your income is below that, you do not have to file.

What if I owe federal tax on my SSDI but my state does not tax it?

You still owe federal tax if your combined income is above the federal threshold. You would file a federal return reporting the taxable portion of your SSDI, but your state return would not include SSDI as taxable income. Each government has its own rules.

Can I request that Social Security withhold taxes from my SSDI?

Yes. You can ask Social Security to withhold federal income tax from your monthly benefit. This is done using Form W-4V, which you can get from Social Security's website or by calling 1-800-772-1213. Withholding can help you avoid owing a large amount at tax time.

What if I did not receive SSDI for the whole year?

Your tax statement will show only the months you actually received benefits. If you started SSDI in June, for example, the statement will show benefits from June through December only. Report only the amount shown on your statement.

Is there a penalty for not reporting SSDI on my tax return?

If you are required to file and you do not report your SSDI income, the IRS can assess penalties and interest. Even if you do not owe tax on your benefits, you should still report the income if you are required to file. Filing protects you from IRS action later.