Question:

Do people who collect welfare have to pay taxes on that income?

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What about other types of government hand outs like food stamps and disability?

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4 ANSWERS


  1. No welfare payments aren't taxed or reported on tax returns.  Same for food stamps.

    Disability payments in many cases are reportable and can be taxable.


  2. Of course not.

  3. It wouldn't make sense to charge income tax on welfare payments.  If they were taxed, they would have to be higher.

  4. Welfare and stamps are not taxable income.  Disability payments from the government are part of SSI, which is nontaxable until adjusted gross income meets a certain level, then its taxability phases in.

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