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Do You Owe Taxes on Your Disability Benefits?
Episode Summary
In this episode, Deborah Spector, lead attorney at Spector & Lenz, breaks down how Social Security Disability (SSDI), Supplemental Security Income (SSI), long-term disability, and workers’ compensation benefits are taxed. She explains the key income thresholds, what makes SSDI taxable, and why SSI usually isn’t. Deborah also shares what to know about double taxation, back pay taxes, and how to plan ahead with proper withholding or help from an accountant to avoid unexpected tax bills.
Key Timestamps
00:00 – Do you owe taxes on your disability benefits?
01:30 – Why SSDI benefits aren’t always tax-free
03:00 – Income limits for single vs. joint filers and how taxation applies
05:00 – Withholding options to avoid large tax bills
06:00 – How much of your SSDI can be taxed (up to 85%)
07:00 – Why SSI benefits are not taxable
08:30 – How other income (work, pension, LTD) affects SSDI taxes
10:00 – The role of long-term disability and workers’ compensation in taxation
12:00 – How SSDI back pay is treated for tax purposes
14:00 – The importance of consulting an accountant for tax planning
15:00 – Why everyone should create a “My Social Security” account on ssa.gov
About the Show
The Disability Approval Path helps individuals understand and navigate the Social Security Disability process with clarity and confidence. Each episode offers straightforward legal insights and practical steps to help claimants protect their rights and make informed financial decisions.
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By dennis2qEpisode Summary
In this episode, Deborah Spector, lead attorney at Spector & Lenz, breaks down how Social Security Disability (SSDI), Supplemental Security Income (SSI), long-term disability, and workers’ compensation benefits are taxed. She explains the key income thresholds, what makes SSDI taxable, and why SSI usually isn’t. Deborah also shares what to know about double taxation, back pay taxes, and how to plan ahead with proper withholding or help from an accountant to avoid unexpected tax bills.
Key Timestamps
00:00 – Do you owe taxes on your disability benefits?
01:30 – Why SSDI benefits aren’t always tax-free
03:00 – Income limits for single vs. joint filers and how taxation applies
05:00 – Withholding options to avoid large tax bills
06:00 – How much of your SSDI can be taxed (up to 85%)
07:00 – Why SSI benefits are not taxable
08:30 – How other income (work, pension, LTD) affects SSDI taxes
10:00 – The role of long-term disability and workers’ compensation in taxation
12:00 – How SSDI back pay is treated for tax purposes
14:00 – The importance of consulting an accountant for tax planning
15:00 – Why everyone should create a “My Social Security” account on ssa.gov
About the Show
The Disability Approval Path helps individuals understand and navigate the Social Security Disability process with clarity and confidence. Each episode offers straightforward legal insights and practical steps to help claimants protect their rights and make informed financial decisions.