TAXES on back pay for Social Security?

Discussion in 'Fibromyalgia Main Forum' started by sleepyinlalaland, Feb 1, 2006.

  1. sleepyinlalaland

    sleepyinlalaland New Member

    I just read on another thread a comment by Didders that you have to pay TAXES on the backpay amount. I was not aware of that...but I'm not aware of a lot of financial stuff!

    Just wondering if she was referring to back pay from private disability, or if in fact taxes are owed from Social Security payments. I receive both SSI and SSDI and got a nice back payment (4 years worth) last fall.

  2. Sueisme

    Sueisme New Member

    It depends what your household income is. If youa re married and your spouse earns a certain amount, you may have to pay on 50% of your ssdi, or on 80% of your ssdi. Unless they just changed the rules. But as of last year, some people had to pay taxes on there social security. I know I did. If your household income did not meet the threshold in years befor eyou recieved the ssdi, the backpay can be spread out those previous years, and you may ot hav eto pay taxes on some of your back pay. Hope that makes sense. The social security website can tell you more.
  3. NyroFan

    NyroFan New Member

    I called the IRS about it when I got my back payment.
    They told me to divide the money by years on my income tax papers. I didn't have to pay a dime. A call to IRS could change everything.
  4. suzetal

    suzetal New Member

    Please see my post.......

    Tax Time = Taxes on ssd benifits .This is what they said....

    Please look at it you might owe taxes.

  5. rockyjs

    rockyjs Member

    I was working on taxes yesterday and what I was told is that you can elect to take a Lump Sum Exemption which keeps you from having to pay taxes on previous years, but you will be taxed on the current year according to the guidelines (based on income).

    I got $8000 in back pay and have to pay taxes on $800 of it. I also got a 1099...if you didn't, contact Social Security.

  6. rockgor

    rockgor Well-Known Member

    reforming the tax situation. I'm sure it's all very simple by this time.
  7. justlooking

    justlooking New Member

    I received 3 years back pay in a large lump sum, and at the time was unaware I would have to pay taxes on it. My husband works, has a good income, and therefore we had to pay a HEFTY amount in taxes on my SSDI. It was split up into the 3 years and then each tax return from those years had to be adjusted and refiled.

    My suggestion to all people who receive a lump sum from the SSA is to put away a portion until after tax time, just in case. If you can't pay the taxes at that time you will accrue penalties on the amount you owe.

    To ensure you won't have this problem on your future tax returns contact SSA and have the taxes automatically deducted from your check each month.

    Go to the SSA website for additional information, it is on their site.
    [This Message was Edited on 02/02/2006]

    BLUEROSE7 New Member

    I too just filed and had to pay taxes on SSDI & backpay for 6 was combined together for the year...Well I didn't actually have to pay but I would have gotten back 4 to 500.00 more on my refund...

    Like others where saying it really depends on your overall income coming into your household...what your spouse makes etc...

    I also got the tax form from SS.

    Hubby makes pretty good and we have no children so he has extra taxes taken out during the year, so we get a refund back and don't have to worry about paying in.

  9. rockyjs

    rockyjs Member


    Here's the link to the publication on the IRS website that explains taxes on disability benefits:

    Hope that helps!

  10. sleepyinlalaland

    sleepyinlalaland New Member

    Looks like you don't have to unless maybe you do!

    Obviously this is not a cut and dry issue, and I will have to call my S.S. office. At least now I know that much, thanks to y'all.
  11. JLH

    JLH New Member

    Yes, I pay taxes on my SSDI income every year ... and I have them take out a certain dollar amount each month so I won't have to pay at the end of the year.

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