How to File Taxes When Receiving Social Security Disability Payments in 2024

Each and every year U.S. citizens have to file taxes with the Internal Revenue Service (IRS). When you work for an employer, tax season is rather simple and straightforward. Your employer deducts taxes from your weekly paychecks and, at the end of the year, provides you with a W-2 telling you how much money you made and how much of that money went to the government. That information is then used to file your taxes with the IRS. Tax season isn't so simple and straightforward for Social Security Disability beneficiaries, but it doesn't have to be a financial nightmare. If you have begun receiving payments from the Social Security Administration (SSA), the following information will help you get through the upcoming tax season and will help you understand how to file your IRS tax return.

Taxable Amount

The first thing you need to understand is that Social Security Disability payments aren't always taxable. If you do not make more than $25,000 a year and file as an individual or your household income is less than $32,000 per year and you file jointly, you will not have to pay taxes on your Social Security Disability benefits. If your income exceeds those limits, a portion of your disability payments may indeed be taxable.

The bad news is that, you may have to pay taxes on your disability benefits if your income exceeds a certain amount. The good news is that you will never have to pay tax on all of your disability benefits. In fact, no matter how much you make, you will never have to pay taxes on more than 85 percent of your Social Security Disability income. The limits are as follows:

  • If you earn more than $25,000 but less than $34,000 and file as an individual or more than $32,000 but less than $44,000 and file jointly, then fifty percent of your disability income will be taxable.
  • If you earn more than $34,000 if filing as an individual or more than $44,000 if filing jointly, then you will need to pay taxes on eighty-five percent of your disability income.

The exact dollar amount you are responsible for will depend on how much income you have received during the year and what tax deductions you may be entitled to.

The Back Payment Issue

If you have just begun receiving Social Security Disability payments and you received a back payment from the SSA, you need to be very careful when filing taxes and claiming your back payment amount as income on your tax return. Back payments are usually paid as a lump-sum amount by the SSA. This does not mean, however, that you should claim the full amount on the tax return for a single year. If you do claim your back pay as a single year's income, it will put you in a higher tax bracket and you may end up paying more taxes than you are actually liable for. Instead, you should file amended returns for the years that the back payment covered and only claim this year's payment on your current year's income tax return.

Knowing How Much to Claim

Each year the SSA will provide you with a form SSA-1099. This form will tell you how much money you received from the SSA in Social Security Disability benefits. You will use this form to fill out your income tax return.

If this is your first year filing taxes while receiving Social Security Disability payments, you may want to hire a tax professional to help you through the tax process. A tax professional can help you understand how your Social Security Disability benefits affect your tax liabilities and can help you through the back-payment issue.

Withholding Taxes

The SSA is not required to hold taxes back from your Social Security Disability payments. If you end up owing taxes at the end of the year, you can request that the SSA hold taxes back for you. If you would like the SSA to withhold taxes from your Social Security Disability payments, contact them to set up tax withholding arrangements.

How to File for Social Security Disability Online

The Social Security Administration (SSA) receives about three-million applications for disability benefits each year. If each and every applicant were to go in to the local Social Security office to apply for Social Security Disability benefits, the lines would be horrendous. How do you avoid the crowds at the Social Security office while still being able to apply for the disability benefits you need? If you have access to the Internet, you can complete your application online.

Disability Protective Filing

The first time you contact the Social Security Administration (SSA) regarding your intent to file a claim for Social Security Disability benefits, a disability protective filing date is established for you. This date can later be used as your date of application, even if you don’t make an official application at the time.

Traumatic Brain Injury and Social Security Disability

An estimated 1.7 million people suffer a Traumatic Brain Injury in the United States each year. The resulting brain damage can often result in an inability to work, leaving the person who suffers from the injury without a means of supporting themselves or their family. Without an income, the financial stress can become quickly overwhelming. In some cases, Social Security Disability benefits may be able to offset some of the financial burden.

Schizophrenia and Social Security Disability

Just over 1 percent of the population is affected by Schizophrenia. People who suffer from the condition often experience a barrage of severe and debilitating symptoms. In many cases, individuals who are diagnosed with Schizophrenia are unable to work and, in some cases, cannot be left unattended. The financial repercussions of the disorder can be devastating. Fortunately, Social Security Disability benefits can often help those who have been diagnosed with a schizophrenic condition. If you or someone you know has been diagnosed with Schizophrenia and you would like to obtain Social Security Disability benefits, the following information can help you through the Social Security Disability process.

Schizophrenia - Condition and Symptoms

Schizophrenia, also referred to as split personality disorder, is a chronic mental illness. The condition affects more than 2 million people in the United States alone and is more prevalent among men than it is in women.

The symptoms of Schizophrenia can be debilitating in nature. People who suffer from the condition will often experience hostility, paranoia, emotional impairment, depression, hallucinations, disrupted sleep patterns, odd or irrational statements, forgetfulness, poor concentration, extreme reactions to criticism, improper word use, difficulty maintaining relationships and social isolation. The specific symptoms and the severity of those symptoms will vary from individual to individual.

The symptoms suffered by an individual who is diagnosed with Schizophrenia may depend on the type of Schizophrenia the person is diagnosed with. There are four main categories of Schizophrenia including paranoid Schizophrenia, catatonic Schizophrenia, disorganized Schizophrenia and undifferentiated Schizophrenia. A person who is diagnosed with paranoid Schizophrenia will display anxiety, a tendency to argue and uncontrolled anger. Those who are diagnosed with catatonic Schizophrenia will suffer from increased agitation, rigid muscles, an increased pain tolerance and a negative emotional state. Individuals who suffer from disorganized Schizophrenia will display inappropriate laughter, incoherent speech and immature, repetitive behavior. When a person is diagnosed with undifferentiated Schizophrenia, it means that they exhibit symptoms from more than one category of the illness.

Schizophrenia is usually diagnosed by observing a patient's emotions and actions. Some tests may also be conducted to diagnose a schizophrenic condition, such as interviews and assessment questionnaires. In many cases, blood tests and brain imaging tests will be conducted to rule out physical causes of the symptoms a patient is suffering from.

Once a schizophrenic condition has been diagnosed it is very important that treatment is provided. While there is no cure for Schizophrenia, treatment can help manage the symptoms of the condition. Common treatments for Schizophrenia include behavioral therapy, mood stabilizing drugs and anti-psychotic medications. In severe cases, hospitalization will be necessary in order to care properly for a schizophrenic patient.

Filing for Social Security Disability with Schizophrenia

Fortunately, Schizophrenia is a qualifying condition for Social Security Disability benefits according to the Social Security Administration's published disability guidelines. The Social Security Administration (SSA) publishes a listing of impairments that is known as the “Blue Book”. Schizophrenia is covered under these listings in Section 12.03.

A diagnosis of Schizophrenia is not enough, in and of itself, to qualify an individual for Social Security Disability benefits. Because the severity of Schizophrenia varies from person to person, certain guidelines must be met in order to qualify for disability benefits. According to Section 12.03 of the SSA Blue Book, an individual must suffer from delusions, hallucinations, catatonic behavior, patterns of illogical thinking and/or emotional isolation in order to qualify for Social Security Disability benefits. You must also be able to prove that your condition has lasted for at least two years and that you are not able to function in the outside world without a significant amount of support.

Schizophrenia and Your Social Security Disability Case

In some situations, an individual who applies for Social Security Disability benefits due to Schizophrenia will be approved at the initial stage of the disability application process. Most of the time, however, it will be necessary to file an appeal in order to receive the benefits you are entitled to. This is largely due to the fact that it can be difficult to prove that Schizophrenia is preventing an individual from performing substantial gainful activity. Approximately 70 percent of disability applications are denied at the initial stage of the application process.

If you are looking to file for Social Security Disability benefits or have already been denied, you should consider retaining the services of a Social Security Disability attorney. Your attorney can help you gather the information and evidence needed to prove the extent of your disability to the SSA and can represent you during the hearing stage of the disability appeal process. Statistics show that applicants who have legal representation during all stages are more likely to receive a favorable decision on their disability claim than those who do not.

Seizure Disorder and Social Security Disability

Seizure Disorder, also known as epilepsy, can be a challenging and debilitating condition to live with. The condition only affects .05 percent of the population, but those who suffer from Seizure Disorder are often unable to work because of the affects the condition has on their physical capacity. The lack of an income due to this inability to work can result in serious financial devastation. Fortunately, Social Security Disability benefits are often able to alleviate some of the financial stress.

Stroke (Cerebrovascular Accident) and Social Security Disability

Approximately 700,000 people in the United States suffer from a stroke each and every year. While many of these individuals only suffer from limited or temporary effects, others face long-term or permanent disabilities as a result of their stroke. Unfortunately, these disabilities often lead to an inability to work. The resulting loss of income and lack of employer-provided medical benefits can be financially devastating. Fortunately, Social Security Disability benefits can offset some of the financial crisis caused by a disability due to a stroke.

Drug Addiction and Social Security Disability

There are many forms of Drug Addiction – some more serious than others. In some cases a Drug Addiction can have a significant impact on one's life. While many Drug Addictions begin slowly and seem harmless to begin with, over time they can wreak havoc and devastation on a person's lifestyle, relationships and even their ability to maintain a job. When a Drug Addiction takes over one's life, it can be impossible to generate a stable income.