Social Security Disability and Income Tax

“The Taxman Cometh” is the sixth episode of the 2006 Robin Hood television series, made by Tiger Aspect Productions for BBC One. It aired on Saturday November 11, 2006 at 7.00pm. Its title is a reference to the play The Iceman Cometh. (http://en.wikipedia.org/wiki/The_Taxman_Cometh, accessed Feb 2007).

For most of us tax time is an ongoing year-by-year series that starts many of us thinking about it (worrying?) in January and keeps you on the edge of your seat until April 15^th. Frankly, for me, it is a downright pain where a pill won’t reach; I hope this information makes filing your taxes a lot easier.

Whether new to social security or a seasoned pro, there are bound to be questions about tax time and benefits. Today starts a series articles on social security and taxes.

Remember, I said before I am neither a lawyer nor a doctor, and now I want you to know I am also not a tax professional! I am someone interested enough, though, to research for you and provide information so you do not have to scour the internet!

Today’s topic will be basic: Do I have to pay taxes on my social security?

The answer is not as basic: Like many social security administrative criteria, the answer depends on some variables.

The easiest way to figure it out is by asking:

1) am I filing an individual return or a joint return and then

2) if filing individual, is your total income more than $25,000? or

3) If filing a joint return, is your total income more than $32,000?

SO, If you can answer ‘yes’ to question 2, after applying your answer as an individual or joint filer, then you will have to pay federal taxes on your benefits.

The bottom line is…
If you are filing on your own (single) and your income more than $25,000 – you pay taxes
If you are filing on your with your spouse (jointly) and your income more than $32,000 – you pay taxes

Also, remember that the social security administration cannot withhold taxes from your benefits without your permission! Please contact them to talk with a representative from social security about tax withholding and about your state and local tax withholding. Click here to find your local Social Security Office.

To continue learning about social security disability or to learn more, I recommend you complete my FREE SSDI mini course so you can maximize your chances of winning.

Helping YOU Win Disability Income!

Brian Therrien