SSDI and Tax Returns question...please help

[kit78]

I worked last year for 4 months before I lost my transplant and had to go on HD. Was on SSI until January of this year which is when I started getting SSDI.  I filed my taxes and received my monies but today did not get my SSDI check in the bank as usual.  Is this normal?  Does the SSDI department consider that your income tax refund replaces your SSDI check for the month?

[jeannea]

I would think the best way to find out what happened is to call them. Maybe because Fri was a holiday things are a day off.

[Restorer]

With the positioning of Easter this year, I had my SSI credited to my account on Saturday but it's still listed as processing. Did you get something deposited earlier but not processed/credited yet? It might just show up tomorrow. 

That is to say, I doubt the taxes have anything to do with it. Tax refunds generally aren't considered in any kind of income calculation.

[Chris]

Hmmmm, odd how you got your SSDI with holidays. I get SSDI on the 3rd of the month and if there is a holiday the day of, it's a weekend, I get paid on a Friday.
 
As suggested, I would call either your local office, or the toll free number, but also check with your bank if you can online. Maybe they were updating their site if you looked earlier. However when I worked and then went on SSDI, I had to owe money and they did not take it out of my SSDI.
 
Another thought, are you signed up for electronic deposit? The govt is getting away from sending checks and if you do not change over they will be starting to charge penalties according the the website.

[frankswife]

I don't think your tax refund has anything to do with it. I think the deposit it probably not credited yet, or at worst, some electronic error. It happens. If it's not there in a day or so call them.

[kit78]

Thanks,  Those of you who do get SSDI, how much are the taxes they take out or do you just wait till tax time to worry about it?

[Chris]

No taxes are taken out of mine and I do not need to file taxes anymore. That was a hard habit to break tho till the IRS called because I entered information in the wrong place and they explained why I didn't need to.


Of course that depends if you are single and no other income is involved.

[kit78]

OK I am confused here....  I only get SSDI, but was told by SS that SSDI has to be claimed every year and you have to pay taxes on it.

[frankswife]

Frank doesnt have any taxes taken out of his. I didn't think you had to claim it.

[Jean]

SSDI is not taxable to the Federal Government.

[frankswife]

Actually, I am wrong. Frank's SSDI WILL be taxable based on my income, but only 50% of it is taxed. There's a scale for percentages of taxation based on spouse's income for joint filers. SSI is not taxable at all.

[Jean]

Isnt SSDI the Social Security Disability? If so, it is not taxable to the Federal Govt. Disability is not taxable. Regular Social Security however is taxed if all of your income including Social Security is I think
above $25, 000 if you are single and $40,000 if you are married filing jointly. 

[frankswife]

SSDI is Disability and yes it is taxable based on a person's TOTAL income. A single person would not be taxed. But since I work and Frank and I file jointly, I have to include the SSDI and 50% of it is taxable. If I earned less, a lower % is taxed. 50% is the max. SSI, the Disability for low income, is not taxable.

[Jean]

Disability is disability, regardless of your income level and it is not taxable. In my 28 years of being a registered tax preparer I have done quite a few income tax returns and disability is not taxable.

[frankswife]

Jean, I will defer to your 28 years of experience to put an end to this debate. However, having gotten my info from irs.gov and out of an abundance of caution, I'm going to claim the disability just in case!

[kit78]

Here is what I found on SS site:


One of the more common questions asked of Social Security Disability representatives is “Are my SSDI payments taxable?” The answer, quite simply, is that it depends on your total income. For most people, if Social Security Disability benefits payments represents your only income, you will not be subject to federal income taxes.

If, however, you have other income, either from your spouse or from passive income such as rent and investment income, you may be subject to taxation of part of your Social Security Disability benefits. The factors considered are whether you are married and what your total (combined, if married) income is.

If you’re single and your only income comes from your Social Security Disability benefits, you won’t need to worry about federal income tax. If you have other sources of income, your Social Security Disability Insurance (SSDI) benefits will be taxable if your total income (including your SSDI payments) is greater than $25,000 per year. Fortunately, though, you won’t have all of your benefits amount taxed. It breaks down like this, for single people:

    Individuals making more than $25,000 but less than $34,000 are subject to taxation on half of their Social Security Disability benefits.
    Individuals making more than $34,000 are subject to taxation on 85% of the Social Security Disability benefits.

For those who are married, your wife’s income is considered. Filing separately doesn’t help you, either, as your Social Security Disability Insurance payments will be taxed at the higher rate if you choose to file separately. Filing separately may, in certain instances, still be to your advantage because of how your income could affect your spouse’s tax liability. Check with a qualified accountant or lawyer before making the decision on whether or not to file separately.

If you are filing together, your Social Security Disability benefits are taxable if your joint income is higher than $32,000. As with single individuals, this includes all forms of income. The breakdown for married couples in which one or both of you are collecting Social Security Disability is as follows:

    Couples making more than $32,000 but less than $44,000 are subject to taxation on half of their Social Security Disability benefits.
    Couples making more than $44,000 are subject to taxation on 85% of their Social Security Disability benefits.

[frankswife]

Thanks kit. This is exactly what I read and what I was attempting to reference, but not doing a very good job of it! BTW, did you ever get your check?