What Happens at Tax Time with Disability Benefits?

At this time of the year, people who are receiving disability benefits start asking about taxes on their checks. How much, if any, of a Social Security benefit is taxable? It depends on total income and marital status. Generally, if social security benefits were your only income for 2008, your benefits are not taxable and you probably do not need to file a federal income tax return.

If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status. Your taxable benefits and modified adjusted gross income are figured in a worksheet in the Form 1040A or Form 1040 Instruction booklet. See this informative article at msnbc: