Tax Season — It’s About What You Know
Reading Time: 2 MinutesLast Updated: March 17, 2016
Did you know that your Social Security benefits may be taxable?
This includes your monthly retirement, survivor, and disability benefits. About one-third of people receiving Social Security benefits must pay taxes on some of these benefits, depending on the amount of their taxable income. This may happen if you have other significant income in addition to your Social Security benefits.
To find out whether you must pay taxes on your benefits, you will need your Social Security Benefit Statement (Form SSA-1099/1042S). You should automatically receive it in the mail each January. It shows the total amount of benefits you received from Social Security in the previous year so you know how much Social Security income to report to the Internal Revenue Service on your tax return. The benefit statement is not available for people who receive Supplemental Security Income (SSI), as SSI payments are not taxable.
If you didn’t receive your Benefit Statement or misplaced it, you can get an instant replacement easily by using your secure my Social Security account. If you don’t already have an online account, you can create one in minutes. Go to the my Social Security page, and select “Sign In or Create an Account.” Once you are logged in, select the “Replacement Documents” tab to obtain your replacement 1099 or 1042S benefit statement. You can also use your personal my Social Security account to keep track of your earnings each year, manage your benefits, and more.
You can also obtain a replacement benefit statement by calling us at 1-800-772-1213 (TTY 1-800-325-0778), or contacting your local Social Security Office. If you live outside of the United States, please contact your nearest U.S. Embassy or Consulate.
Don’t wait. Be ready! Open your own personal my Social Security account today.
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About the Author
Jim Borland, Assistant Deputy Commissioner, Communications
Jim Borland, Assistant Deputy Commissioner, Communications
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Barbara G.
I received a bill from IRS saying I owe taxes on a past lump sum disability payment from SSD.
I didn’t know I had to pay taxes!! Is this true??
V.V.
For your security, Barbara, we do not have access to private information in this venue. We ask that members in our Blog community work with our offices with specific questions. You can call us at 1-800-772-1213 for assistance or you can call your local Social Security office. Please look for the general inquiry telephone number at the Social Security Office Locator. The number may appear under Show Additional Office Information. Please be aware that our call wait times are longer than normal. We hope this information helps.
Teresa G.
Hello. My daughter is 25 yrs old and receives SSDI benefits and works part-time. Why is it necessary to report her wages if she was approved for SSDI? And, if we have to report wages, can it be done quarterly or annually? What is the earned income limit per month for a person on SSDI?
V.V.
Hi Teresa, thank you for your question. Social Security has special rules that make it possible for people with disabilities receiving Social Security Disability (SSDI) or Supplemental Security Income (SSI) to work and still receive monthly payments. These are called work incentives.
For SSDI beneficiaries, there is a Trial Work Period (TWP) and then an Extended Period of Eligibility (EPE). The TWP allows you to test your ability to work for at least 9 months. During this period, you will receive your full disability benefit regardless of how much you earn as long as your work activity is reported and you continue to have a disabling impairment. In 2021, any month in which earnings exceed $940 is considered a month of the 9-month trial work period.
Once you’ve completed your TWP, you get a 36-month safety net called the EPE. During the EPE, you get benefits for all months your earnings or work activities are below the Substantial Gainful Activity (SGA) level as long as you continue to have a disabling impairment. Social Security will suspend cash benefits for months earnings are over SGA and start benefits again if earnings fall below the SGA level. In 2021, you are earning SGA if your earnings, after any allowable deductions, are more than $1,310 in a month.
Check out Social Security’s Red Book for descriptions of the many work incentives.
For the options in reporting wages, check out our Frequently Asked Questions web page for the details.
Pat R.
is ss disability taxable ?
V.V.
Hi Pat, thanks for using our blog. Social Security mails an SSA-1099 each year in January to people who receive Social Security benefits. It shows the total amount of benefits you received from Social Security in the previous year so you know how much Social Security income to report to IRS on your tax return.
Check out our Frequently Asked Questions web page for options on receiving an instant replacement SSA-1099 beginning February 1st. We hope this helps!
Mary
Hi, I’m wondering if I can find out if I will have taxes taken out of my Social Security…. I will be retiring at 65 and 4 months which is not far away, I will only be getting $953.00 a month and have no other source of income, can you let me know how much if any taxes will be or might be taken out of my payment please?
V.V.
Hi Mary, thank you for using our blog. You can sign up to have federal taxes withheld from your Social Security benefits; however, they are not withheld unless you request it. Check out our Withholding Income Tax From Your Social Security Benefits web page for more information. We hope this is helpful!
Beverly
Hi I’ve been on disability for 10 years when you turn 65 does that disability fall away and just become social security? It seems that way please clarify For exemptions on property does that disability need to be reversed?
V.V.
Hi Beverly: We pay disability benefits through two programs: the Social Security Disability Insurance program (SSDI) and the Supplemental Security Income (SSI) program.
When you receive disability benefits under the Social Security Disability Insurance (SSDI) program, we will automatically convert your disability benefits to retirement benefits, when you attain your Full Retirement Age. The benefit amount will generally remain the same.
On the other hand, if you’re receiving disability benefits under the Supplemental Security Income (SSI) program, and become eligible for any other Social Security benefits on your own record or the records of others (e.g., retirement benefits) you are required to apply for those benefits as soon as you’re eligible. SSI is a needs based program intended for disabled adults that have limited income and resources so additional income can affect SSI eligibility.
Larry D.
I have applied for benefits starting June 2020, my Full Retrement Age month, the application was sent in early November. Now that it is getting to the end of the year, it seems likely the check will not be processed in 2020, so will be deposited in 2021. But how will the 2020 benefits be taxed, will they be part of 2020 (when the actual benefits were ‘earned’), or taxed in 2021? I recognize that not all SS benefits are taxed, but this could be important if they are taxed in 2021, because the partial 2020 benefits will be added to the full year 2021, thu inflating the 2021 total amount. Thank you for your help.
V.V.
Hi Larry, thanks for using our blog. The SSA-1099 (Social Security Benefit Statement) shows the amount of benefits received in the prior calendar year. A worksheet (IRS Notice 703) is included for determining whether any portion of your Social Security benefits received is subject to income tax. We hope this helps!
Gay D.
I retired the end of august 2020 and I have been having the maximum amount of taxes taken out of my social security check. I will not be working in 2021 and I do not have any other income or money other than my monthly social security check, do I still have to have the taxes taken out and if not how do I go about changing it.
S.D.
Hi, Gay. Thank you for reading our blog and for your question. To stop your voluntary tax withholding, you’ll need to complete Form W-4V from the Internal Revenue Service (IRS). You can download the form or call the IRS at 1-800-829-3676 and ask for Form W-4V. Complete, sign and mail the form to your local Social Security office. Use our Office Locator to find the mailing address. For more information about voluntary tax withholding, check out our retirement planner. We hope this helps.
Guy o.
Are Social Security Disability payments taxable and if so above what amount?
V.V.
Hi Guy, thanks for using our blog. Some Social Security beneficiaries have to pay federal income taxes on their Social Security benefits. This usually happens only if there is substantial income in addition to the Social Security benefits (such as wages, self-employment, interest, dividends and other taxable income that must be reported on your tax return). Check out our Income Taxes and Your Social Security Benefit web page for details.
Cynthia S.
It’s about what you know? Really?
kimberly b.
I really don’t know what to do. I am trying to get my daughter some help. She was receiving disability and they stopped it when she turned 18. Now 21 she has no insurance. What can I do to help my daughter?
What to report wages from Grady Memorial Hospital $151.00 month started 10/2020 and $66 a month from 1199 Credit Union started 08/2020. Work voter poll once this year.
V.V.
Hi Kimberly, thanks for using our blog. We pay disability benefits through two programs: the Social Security Disability Insurance program (SSDI) and the Supplemental Security Income (SSI) program. To qualify for SSDI benefits, you must have worked long enough and recently enough in jobs covered by Social Security (usually within the last 10 years). The (SSI) program is a needs based program that gives cash assistance to disabled individuals with limited income and resources. We pay disability benefits to people who are unable to work because of a medical condition that is expected to last one year or more or to end in death. If you think your daughter may be eligible to receive disability benefits and she would like to apply, she can use our online application.
If she’s unable to apply online or you all have additional questions, you can call us at 1-800-772-1213 or you can contact your local Social Security office. Please look for the general inquiry telephone number at the Social Security Office Locator. The number may appear under Show Additional Office Information. Please be aware that our call wait times are longer than normal. We hope this information helps.
Michelle P.
I receive SSD I turn 65 in February can I receive half of my ex spouse’s social security. Is it one or the other or both?? Was marred for 16 years