Many folks who only receive Social Security Disability Benefits (SSDI) have no taxable income and therefore don't need to file a return. But it depends on your filing status (single, married filing jointly, other) and other sources of income that you (or spouse, if applicable) may have. The federal taxability of your Social Security disability or retirement benefits is based on a concept called provisional income and it's different than the standard federal income tax brackets. Provisional income = adjusted gross income (w/o SSDI) + nontaxable income (i.e. muni bond interest) + 1/2 of your SSDI benefits. Here’s the breakdown for what’s includable in your federal taxable income:
No Social Security (disability or retirement) is included in taxable income for single filers with provisional income less than $25,000 or married filing jointly with less than $32,000
50% of SS benefits included in taxable income for single filers with provisional income between $25,000-$34,000 or married filing jointly between $32,000-$44,000
85% of SS benefits included in taxable income for single filers with provisional income over $34,000 or married filing jointly over $44,000
Most states don’t tax Social Security benefits but be sure to check the particulars for your state. I hope that helps. All the best!
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