IRS and Soc Security Disability BackPayment?

Discussion in 'Chit Chat' started by ChristineInPA, Aug 20, 2007.

  1. ChristineInPA

    ChristineInPA New Member

    I hope someone can help me.

    I've read through the IRS site and the Soc Sec site, and I cannot find an answer to this.

    How do you figure out how much of your back-payment award is taxable?

    I am married. With my husband's income, plus 1/2 of my regular SSD, we are above the IRS's minimum, and therefore part of my SSD is taxable.

    It took forever to get my backpayment. I got it this year.

    So, I will have to figure out how much of THAT is taxable, in addition to the portion of the regular monthly SSD.

    I am lost. I would think someone here has been through this and I hope someone can lead me in the right direction?

    Thanks in advance,
  2. victoria

    victoria New Member

    don't know, but I didn't think SSD would be taxable, period, regardless of what your spouse makes or made, as it's based/considered only on what you've made.

    Perhaps double-check with an accountant, as it may be worth the money to do so, or check Lasser's Tax Guide the bookstores should have it.

    Hope that helps or someone knows for sure.

    all the best, & hoping that I'm right that you don't owe anything LOL,

    [This Message was Edited on 08/21/2007]
  3. findmind

    findmind New Member

    On the annual Soc Sec statement I get saying how much my next year's payent will be, there is a paragraph that says something about some of the SSDI being taxable if you have over a cerain amount in EARNINGS, or Earned Income.

    My tax accountant told me that unless I get a Form 1099 its not taxable, but it seems to me if you are filing as married, and you have earned income in the family, you really should go to a CPA tax person to give you the real regulations about it.

    Good luck....
  4. ChristineInPA

    ChristineInPA New Member

    I just found out, thanks to another wonderful member on the CFS board, that not only is it taxable, it is WAY taxable.

    Here's how to find out:

    First, add oneā€“half of the total social security you received to all your other income, including any tax exempt interest and other exclusions from income;

    Then, compare this total to the base amount for your filing status.
    The 2006 base amounts are:

    $32,000 for married couples filing jointly

    $25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouses at any time during the year

    SOOOO, for me, I have to add my husband's income to 1/2 of my SSD for the year. If that is $32,000 or higher, my ssd is taxable.

    ALSO, it took until this year to get my backpayment and that baby is also taxable.

    If you got a backpayment, you HAVE to look into this. The IRS is pretty much incompetent UNLESS YOU OWE THEM MONEY.

    I would strongly suggest you do the math yourself and not listen to anyone like someone from SSD, or the SSD lawyer.

    Even if you DO NOT GET a 1099, I would STILL do the math. The 1099's are sent by the IRS, and although they NEVER make mistakes...WAIT!...yep, you should do the math to make sure.

    Tax laws change every year, so it's to your benefit to check it out.

    No one wants "the Man" on your doorstep, especially when we are so ill.

    There's a post on the CFS board that goes into more detail.

    Here's the link:

    Good luck,
    [This Message was Edited on 08/22/2007]
    [This Message was Edited on 08/22/2007]
  5. findmind

    findmind New Member

    Did you know you can refile your last year's taxes and "average" out your backpayment if it included any months of 2006?

    File an "amended" return. Maybe you'll have to pay less taxes.

  6. JLH

    JLH New Member

    I pay tax on my SSDI checks due to the total amount of income of both my hubby and myself. There is a formula that you use--and you DON'T get a Form 1099 on it either.

    To compute your tax owed on your backpay -- go see H&R Block or another tax professional!!!


    PS = Contact Soc Sec and arrange to have Federal Tax deducted from your monthly SSDI check so you don't end up owing the IRS on April 15th!!
  7. JLH

    JLH New Member

    If you received your backpay this year, you PROBABLY won't have to pay taxes on it until next year.

    Next year, Social Security will send you a form stating how much money they have paid you. Then, following the instructions on that form on how to compute how much you owe -- this is when you take your spouse's income and yours (any pension, alimony and/or child support, your SSDI, etc.) and start computing.

    However, since you won't be paying the taxes until next year, that means that you had better save enough out of your backpay in order to have the money to pay them next year -- I, personally, would put at least 40% of it in the bank in a separate savings account and not touch it--especially if you got a large sum of backpay!!!

    But .... to be sure, you should call the SSA and ask them if this is how it would be.

  8. ChristineInPA

    ChristineInPA New Member

    One thing I've found out through asking this question on other websites is that people just simply don't file with the IRS!

    I found it incredible to see so many people that aren't even wondering if it's taxable and therefore not filing.

    Must be nice.

    I don't have an accountant, LOL. Never had any money for someone to "account" for.
  9. Hootie1

    Hootie1 New Member

    sorry, I feel as though I am bombarding you tonight...

    How many years of back pay can we get??? I am on Long term disability through the Federal Government (FERS- worked there for 20 years in Harrisburg). I will need to send 100% of the 1st year backpay if I were to win (not sure that this will happen, but...) and I'm wondering if I will get more beyond that.

    My last date would be 1/5/07 and I have at least another year until the ALJ is available for a court date. I understand that there is a 5 mth waiting, but I'm wondering that if I would somehow win, would I get paid back to 1/5/07?