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Alabama Disability Attorney Do I have to pay taxes on my disability benefits

Alabama Disability Attorney Do I have to pay taxes on my disability benefits

Alabama Disability Attorney: Do I have to pay taxes on my disability benefits? As we have discussed in previous blogs, there are two types of disability benefits you may be entitled to received; Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).

SSI benefits are not taxable, and most SSDI benefits are not taxed. For individuals, you can draw up to $2,083 a months in benefits before paying any taxes, and the average amount of disability benefits received by those drawing disability benefits is around $1,100.00 a month. Thus, for the majority of individuals receiving SSDI benefits, their benefits are not taxable.

If you are married, then the total amount of monthly income brought in by your spouse is added to the amount of you SSDI benefits. If together you and your spouse bring in $2,666.00 or less, then your disability benefits are not taxable. If together you bring in up to $3,666.00 per month, then 50% of your disability benefits are taxable. If together you bring in over $3,666.00 per month, then up to 80% is taxable-but at your marginal income tax rate, so in actuality your benefits would only be taxed around 10-15%.

Alabama does not tax disability benefits.

For more information, go to http://www.nolo.com/legal-encyclopedia/are-social-security-disability-benefits-taxed.html

If you believe that you are disabled and therefore entitled to disability benefits, please do not hesitate to contact and talk with one of the experienced Alabama Disability Attorneys at Powell and Denny today.

Powell and Denny: We Work When You Can't.

Offices in Hoover, AL and Huntsville, AL.

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