SSD and Taxes

Discussion in 'Fibromyalgia Main Forum' started by borntired, Apr 5, 2006.

  1. borntired

    borntired New Member

    Is anyone recieving SSD? I understand that if your house hold income is over 34,000.00 if you are married, then you are taxed 50%?

    That is scarry!
  2. yuckie

    yuckie New Member

    Quoting from the Social Security Handbook "What you need to know when you get social security disability benefits".

    April 2004 edition, page 6

    Paying taxes on your benefits

    Some people who get social security have to pay taxes on their benefits. About one-third of our current beneficiaries pay taxes on their benefits. You will be affected only if you have substantial income in addition to your social security benefits.

    1. If you file a federal tax return as an "individual" and your income is more than $25,000, you have to pay taxes

    2. If you file a joint return, you may have to pay taxes if you and your spouse have a combined income that is more than $32,000

    3. If you are married and file a separate return, you will probably pay taxes on your benefits.

    For more information, contact the Internal Revenue Service (end quote)

    When they refer to paying taxes, I'm sure they mean at your normal tax rate (whatever that may be)
  3. labrat

    labrat New Member

    To borntired - I think what that 50% taxation refers to the fact that you have to pay tax on 50% of your SSD income. That is what my mom told me, cause she did her taxes wrong last yr and the IRS sent some of her money back!

    The directions are in the tax book for how much SSD income you pay tax on, but you'd better get busy if you haven't filed yet.

    I am getting SSD and didn't have to pay any tax because my total income was very low. I had a professional do my taxes and I highly recommend this, even though it cost me almost $100. I got all the money I had withheld in Fed and state taxes back as a refund.

    Tracy
  4. 69mach1

    69mach1 New Member

    around that will help the seniors and low-income for free...

    on the back of your 1099 it will tell you how to collect if you need to file or not....

    jodie