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Old 05-13-2011, 11:00 AM   #2
BlueSkies14 BlueSkies14 is offline
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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.

 
The Following User Says Thank You to BlueSkies14 For This Useful Post:
jgrangran (05-13-2011)