Over 10 million people in the United States now receive Social Security disability benefits. Many of them are confused about whether or not those benefits are taxable, and they’re confused for a good reason. The answer is, it depends. There is no clear-cut, across-the-board answer. If you receive Social Security disability benefits in Southern California and you are uncertain about your tax obligation, consult at once with an experienced Los Angeles Social Security disability attorney.
How Taxes Work on Disability Benefits
- No Other Income: If your disability benefits are your only source of income, they generally are not taxable.
- Some Extra Income: Individuals earning $25,000–$34,000 per year (or married couples filing jointly earning $32,000) may pay taxes on about 50% of their benefits.
- Higher Income: Individuals earning over $34,000 (or married couples earning over $44,000) may pay taxes on about 85% of their benefits at their marginal tax rate.
Good news: California does not tax Social Security benefits, though some other states do.
A knowledgeable Social Security benefits attorney can review your income sources and help determine exactly what is taxable in your situation. If you’re applying for disability benefits, already receiving them, or just need guidance, call an experienced Los Angeles Social Security disability attorney today. Protect your benefits and ensure you don’t pay more than necessary.