HealthBoards - View Single Post - SSDI Award and LTD reimbursement. Getting Screwed?

BlueSkies14 · 05-13-2011, 11:00 AM

I think you get screwed here in a way. Your math looks correct to me.

1. Prior to SSDI total income = your income + LTD
2. After SSDI total income = your income + offset LTD + SSSI - taxes on SSDI

1 > 2 unfortunately

* Not sure how the child's SSDI is treated but I would think SSA would view it as total household income and this would be taxable.

If so, your taxes would be 2250x.85x28% = 535

2250 - 535 + 250 = 1965

*It seems like you are now being taxed on the full LTD amount whereas before it was tax free. I personally don't think they should tax your wife's SSDI b/c of your income no matter how much you are making b/c your wife paid for the SSDI insurance with FICA taxes when she was working. Does not seem quite fair to me.

05-13-2011, 11:00 AM	#2
BlueSkies14 Inactive (male) Join Date: Mar 2011 Location: USA Posts: 2,603	Re: SSDI Award and LTD reimbursement. Getting Screwed? I think you get screwed here in a way. Your math looks correct to me. 1. Prior to SSDI total income = your income + LTD 2. After SSDI total income = your income + offset LTD + SSSI - taxes on SSDI 1 > 2 unfortunately * Not sure how the child's SSDI is treated but I would think SSA would view it as total household income and this would be taxable. If so, your taxes would be 2250x.85x28% = 535 2250 - 535 + 250 = 1965 *It seems like you are now being taxed on the full LTD amount whereas before it was tax free. I personally don't think they should tax your wife's SSDI b/c of your income no matter how much you are making b/c your wife paid for the SSDI insurance with FICA taxes when she was working. Does not seem quite fair to me.