How many pay taxes on SSD?

Discussion in 'Fibromyalgia Main Forum' started by blondieangel, Apr 8, 2003.

  1. blondieangel

    blondieangel New Member

    I am so disgusted! After a 3 year legal battle I finally win my SSD pittance (the attorney gets almost $4000 of it in back pay)
    and today the tax guy informs me I may have to pay taxes on my SSD depending on what my husband earns! I am LIVID!!!!! I had NO INCOME, we sold practically everything, I suffered/continue to suffer physically, mentally and emotionally due to this DD, and my husband, who has worked numerous 12 hour days, OT, make ends meet...and now the gov can tax a person on SSD...what a crock! I barely have anything left after med's, doc. appts...every month!

    Anybody here married and disabled have to pay taxes on their SSD?????

    Just wondering...
  2. Bellesmom

    Bellesmom New Member

    bump it up in the hopes that someone else does!!!

    What else can be done to those of us who have gone thru all of this???

  3. Achy-shaky

    Achy-shaky New Member

    Unfortunately this is a fact that disgusts me too. Before I got sick and was working I had to pay taxes on 85% on my husbands SS retirement (he is 15 yrs older) because my gross income was over 32K so for years I would try to find some kind of loophole because it never made sense to me. Now that I have quit working and applied for SSD I'm wondering if I will have to pay taxes on it. I sure hope not but knowing the government it wouldn't surprise me. But I really don't get why they should be allowed to tax disability...that's not the same as retirement. I'm sorry to hear you are have had such a hard time and hope that things will get better. I can understand why some people get a divorce but still live together just to survive but why should we have to go to this extreme just because of stupid tax laws. It is not fair!

    Sending Hugs and Blessings!
  4. JLH

    JLH New Member

    Yes, I pay taxes on my SSDI benefits. I have received SSDI for 3 years now.

    My husband is currently working, and I also receive a small retirement pension from where I worked. We file "married, filing jointly" on our taxes.

    It is according how much your husband makes as whether or not you will have to pay tax on your benefits. 85% of my benefits is taxable. I also have Soc. Sec. take the smallest amount of federal tax out of my check each month. You can set the amount you want taken out, if I remember correctly.

    There is a formula you have to complete in the tax workbook that will tell you if you have to pay. If your are filling out a 1040, it's on page 28 of the book. But, since you didn't get your benefits until this year, you won't have to worry about it until next year for the 2003 taxes.

    One thing to think about .... if you got a large sum of back pay (I didn't, and I didn't have a lawyer involved either), you might have a total income high enough that you might have to pay on your benefits the first year, and possibly not the following years.

    You have to look at it the positive way -- I would rather pay taxes on the SSDI benefits that I received than not to have to pay because I received NOTHING--no benefits. lol
  5. victoria

    victoria New Member

    I don't know what the % is, but I believe that I heard that if what you pay for medical out-of-pocket is more than a certain percentage of your income, you can deduct it. Maybe this can help you keep more of the SSDI.

  6. blondieangel

    blondieangel New Member

    If your medical bills total more than $5000 in one year, then you can use them as a deduction. I was able to use mine last year.
    Problem is, you have to save all your receipts for medical visits, tests, med's addition to all the other tax stuff...and we moved twice last year so my papers/home are in MAJOR disarrey, and I'm in a MAJOR FLAIR that's been going on for months...ugh
  7. blondieangel

    blondieangel New Member

    I just hand it over to the tax accountantand let him figure it out, but I have to account for the math figures I give him!;-)
  8. pamj

    pamj New Member

    This past year I got approved, with backpay, and a decent monthly amount ($1451). I definitely thought I'd have to pay taxes since I'm married too. Since my out-of-pocket medical expenses totalled over $15,000, I didn't end up paying anything. Thank goodness, since the medical costs are enough to deal with!

    I'm glad you're looking carefully at your situation. You'd be surprised how much deductions can help you. You can even deduct for mileage to the doctors appointments!

    Good Luck!
    Pam J