Are SSDI and SSI Disability Benefits Taxable?

Only about a third of  Social Security Disability beneficiaries have to pay federal income taxes on their Social Security Disability benefits.  SSI benefits are not taxable.

If Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) is your only source of income, you probably won’t have to pay any federal income taxes on your benefits.

Whether or not you have to pay taxes is determined by your level of income.

For SSDI taxable income concerns, none of your Social Security disability income (SSDI) is taxable if half of your SSDI plus all your other income is less than:

  • $25,000 if you filed as single, head of household, or married filing separately, and you and your spouse lived apart all year
  • $32,000 if you’re married filing jointly
  • if you’re married filing separately, you will probably pay taxes on the benefits.

There may also be State and local income taxes may applied to your disability benefits. Check with your local tax preparation person or the IRS to be sure.