It appears you have not yet Signed Up with our community. To Sign Up for free, please click here....



Disabilities Message Board
Post New Thread   Closed Thread
LinkBack Thread Tools
Old 09-04-2007, 11:03 AM   #1
Senior Member
(female)
 
Join Date: Jul 2006
Location: Pennsylvania, USA
Posts: 259
Queenneeee HB UserQueenneeee HB User
Question Taxes on Disability ?

Hi all, hope everyone is well today. I can't even believe that I am at this point where I now know my darkness has lifted somewhat, I am praying many of you also have some of the stress of applying for benefits and being approved closer also. My question is about taxes. Is disability taxable. Will taxes be taken out of a back pay check ?? Will my backpay and future checks be taxed each time or will it be shown at tax time(and owed). My biggest fear as of now is when I receive and cash my back pay check I will have problems at tax time. There is no way I would be able to pay the taxes then so I would like to know if the taxes would be taken out when you get it. The only info I heard so far which may not be true is if you 'family' income (including your ss check) is over 30,000 then at tax time you will owe taxes on your monthly checks...(I dont' want that to be the case because we would be totally stuck) Thanks in advance for the help. And thanks for all the prayers and good words before my hearing and after, I am also keeping all of you in my prayers so that some day you also will be 'fully favorable' ..take -care,

 
Old 09-04-2007, 01:52 PM   #2
Senior Veteran
(male)
 
Join Date: Oct 2001
Location: Washington
Posts: 1,358
RetiredDirector HB UserRetiredDirector HB User
Re: Taxes on Disability ?

I hope I can help you a little on your questions, Oueneee. I've been on SSD for over four years now and I have them withhold 10% of my gross amount towards taxes. I did this on the advise of our tax consultant. Between my wife and my disability (it's just the two of us, we have grown children) our gross is a little over $60,000. My wife claims "0" exemptions on her W-4 at work. We have always had to pay additional taxes when I was able to work, but the first year I was on disability, we got money back. Every year now we get between $1,500 and $1,800 back.

So to answer your question, if I were you, I would have them withhold the 10% from your back pay and your monthly checks. If you do that, I would think you would ok at tax time.
__________________
Director

 
Sponsors Lightbulb
   
Old 09-04-2007, 02:20 PM   #3
Junior Member
(female)
 
Join Date: Aug 2003
Posts: 49
My Back Hurts HB User
Re: Taxes on Disability ?

I also have additional taxes taken out from my SSDI check so we don't end up owing at tax time, we also file a joint return which leaves my SSDI taxable.

Taxes were not taken out of my back pay (I preferred it that way, but it was not an option) so I had to keep some money aside for when it came to filing time.

The SSA has a simple form if you elect to have taxes withheld from your monthly check, it's normally done by percentage. A tax person should be able to help you figure the percentage if you actually have to withhold taxes.

If the SSA withheld attorney fee's, those fee's can also be deducted when you file taxes, I can't remember the line item, but it falls under some misc. legal expense line item.


Here is a link to the IRS publication which explains further in detail:

Publication 915:

[url]http://www.irs.gov/pub/irs-pdf/p915.pdf[/url]

Last edited by My Back Hurts; 09-04-2007 at 02:24 PM. Reason: typo

 
Old 09-04-2007, 05:22 PM   #4
Senior Member
(female)
 
Join Date: Jul 2006
Location: Pennsylvania, USA
Posts: 259
Queenneeee HB UserQueenneeee HB User
Re: Taxes on Disability ?

Thanks once again for some great replies. After following your link which was full of information I now know I won't be filing my taxes myself on line this year... I must go straight to a tax preparer's office... (costly again) in the mean time I will for sure ask my attorney who won my case to advise me how much to take out of my backpay and also out of my future checks. I DON'T WANT TO HAVE TO OWE AT THE END OF THE YEAR. I already at this time owe the world already.... take-care,

 
Old 09-04-2007, 09:05 PM   #5
Junior Member
(female)
 
Join Date: May 2007
Location: Sioux Falls, SD, USA
Posts: 35
sondra52 HB User
Re: Taxes on Disability ?

Even with my backpay, I'm under the $22,000/annual that you can receive from SSDI w/o having to pay income taxes. Next year will be the first time in 40 yrs. I won't file an income tax return, so that will be odd. I'm so thankful for my disability check, but never imagined when I was younger that at my age I'd be living on under $14,000/annual. Yikes! I guess it's more than a lot of people have though, right?

Last edited by sondra52; 09-04-2007 at 09:07 PM.

 
Old 09-04-2007, 09:26 PM   #6
Senior Member
(female)
 
Join Date: Jul 2006
Location: Pennsylvania, USA
Posts: 259
Queenneeee HB UserQueenneeee HB User
Re: Taxes on Disability ?

Quote:
Originally Posted by sondra52 View Post
Even with my backpay, I'm under the $22,000/annual that you can receive from SSDI w/o having to pay income taxes. Next year will be the first time in 40 yrs. I won't file an income tax return, so that will be odd. I'm so thankful for my disability check, but never imagined when I was younger that at my age I'd be living on under $14,000/annual. Yikes! I guess it's more than a lot of people have though, right?
Yea I know... it's not very uplifting to know how happy we are to get so little. My only reason for making over the max amount is because of my hubby. On my own I would as well not be filing a tax return. But just to know I will soon get "my own" check will make me feel like I am at least contributing to the family.......take-care,

 
Old 09-05-2007, 04:09 PM   #7
Junior Member
(female)
 
Join Date: May 2007
Location: Sioux Falls, SD, USA
Posts: 35
sondra52 HB User
Re: Taxes on Disability ?

Queeneee
I didn't have much luck in the "hubby" dept., so I'll make the less than $14,000 work! I guess the advantage to having this agorophobia is that you don't leave the house, therefore you don't spend a lot of money on gas, entertainment, etc. Wish I could get some help on rental assistance, but there's a 2 yr. + wait on that, but yet who can afford to move? It always works out!

 
Old 09-05-2007, 08:44 PM   #8
Senior Veteran
(female)
 
Join Date: Jul 2005
Location: north of somewhere nice
Posts: 1,477
neurowreck HB User
Re: Taxes on Disability ?

I didn't have to pay anything, or have anything withheld, since my income was less than 25,000 per the tax booklet instructions on figuring SSD into the tax forms (it's a short form, and easy to fill out). I even got a small refund because of earned income credit, that I didn't know anything about qualifying for....that was nice !

 
Old 09-06-2007, 05:39 PM   #9
Senior Member
(female)
 
Join Date: Aug 2006
Location: Roanoke, VA, USA
Posts: 156
tweiler HB User
Re: Taxes on Disability ?

I file joint with hubby so my base amount is $32,000. Even with my backpay I won't be anywhere close to that amount so I won't have to worry about taxes either, what a relief.

 
Closed Thread

Similar Threads
Thread Thread Starter Board Replies Last Post
taxes please help sosickofthis Disabilities 3 12-13-2009 08:22 AM
taxes sosickofthis Disabilities 3 08-27-2009 09:24 AM
Taxes on childrens benefits. Davidewideglide Disabilities 6 02-21-2009 08:38 AM
taxes and disablty benefits becky2210 Disabilities 2 01-28-2009 01:10 PM
If i was on disability do i have to claim it on my taxes EVELYN47 Multiple Sclerosis 4 01-19-2009 02:54 AM




Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is Off
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off




Sign Up Today!

Ask our community of thousands of members your health questions, and learn from others experiences. Join the conversation!

I want my free account

All times are GMT -7. The time now is 12:27 PM.



Site owned and operated by HealthBoards.comô
Terms of Use © 1998-2014 HealthBoards.comô All rights reserved.
Do not copy or redistribute in any form!