Filing taxes on $27,300 SSDI income - just over IRS threshold?

Thank you for explaining! This is such a relief. So even though I'm over the $25k threshold, the standard deduction might save me from actually owing? I'll definitely file to be safe.

That's incorrect information. Social Security Disability Insurance (SSDI) absolutely can be taxable if your provisional income exceeds certain thresholds. For individuals, if your combined income (adjusted gross income + nontaxable interest + half of your Social Security benefits) exceeds $25,000, then up to 50% of your benefits may be subject to federal income tax. Above $34,000, up to 85% may be taxable. Your friend could be in trouble with the IRS if they should have been filing.

Thanks so much for sharing your experience! Our situations sound really similar. Did you need to gather any special forms or documentation for the filing process?

You just need your SSA-1099 form (Social Security mails it to you or you can download it from my Social Security account online). The tax software asks some simple questions and calculates everything. It took me maybe 30 minutes total.

Ugh I hear you. I've spent literal DAYS trying to get through to someone at social security about my benefits calculation. Always busy signals or disconnections after waiting forever. So frustrating when it's your livelihood at stake!

I had the same issue reaching SSA about a tax question. After three days of failed attempts, I tried this service called Claimyr (claimyr.com) that got me through to an actual agent in under 20 minutes. They have a video demo at https://youtu.be/Z-BRbJw3puU showing how it works. Saved me from the endless hold music and disconnects. Much better than wasting days trying to get through on my own.

Thank you for breaking this down so clearly! One follow-up question: does the standard deduction get applied before or after they calculate the taxable portion of my SSDI?

The standard deduction is applied after determining the taxable portion. First, they calculate how much of your SSDI is taxable using the thresholds, then that taxable amount gets added to any other income you have. That total is your gross income, and then the standard deduction is subtracted from that to determine your taxable income.

That's a common misconception. SSDI (Social Security Disability Insurance) can definitely be taxed if your total income exceeds certain thresholds. You might be thinking of SSI (Supplemental Security Income), which is generally not taxable because it's a needs-based program. SSDI, on the other hand, is treated the same as regular Social Security retirement benefits for tax purposes.

Thanks for the encouragement! It is pretty confusing. I'm going to file just to be safe.

Wait, this is confusing me now. So if my ONLY income is the SSDI, then half of that ($13,650) is what gets compared to the $25,000 threshold? And since that's under $25,000, none is taxable? That's different from what others said above.

Sorry for the confusion - I was mistaken in my explanation. For the threshold test, if SSDI is your only income, your "combined income" would be half your SSDI benefits. However, since your benefit is $27,300, half would be $13,650, which is below the $25,000 threshold. This means none of your benefits should be taxable. I recommend confirming this with a tax professional or using tax software to be certain.

This is so helpful, thank you! As someone new to this whole tax situation with SSDI, your explanation really cleared things up. So if I understand correctly, since my only income is the $27,300 SSDI and half of that ($13,650) is below the $25,000 threshold, I shouldn't owe any taxes on it? That's such a relief! I was getting conflicting information above and was starting to panic. I'll definitely still file to be safe, but knowing I probably won't owe anything takes a huge weight off my shoulders. Thanks for sharing your recent experience - it's exactly what I needed to hear!