Do you have to pay income tax on Social Security Disability?

Question

Is Social Security disability taxable? I don't think so but I'm not sure.

Please note I'm NOT talking about Social Security Supplemental Income or SSI.

Answer 1

If it's your ONLY income for the year then it's not taxable.  If you have other income, up to 85% of your SSD may be taxable.  There's a worksheet in IRS Pub 17 for figuring out how much is taxable.

Answer 2

It is treated like any other Social Security payment

Answer 3

Your SSDI payments receive the same tax treatment as SS retirement benefits.  If you have other income subject to tax, and

other income + 1/2 of SS benefits

is more than $25,000, ($32,000 if married filing a joint return), then some of your SSDI benefits are taxed.  There are IRS worksheets to figure out how much is taxed, but the amount that is taxed can be as high as 85% of your benefits.