Are My Disability Benefits Taxable?
If you have been injured or fallen seriously ill, leaving you unable to work, disability benefits from the Social Security Administration can help you pay for your medical bills and other living expenses. Like any kind of income, however, your disability aid is taxable. Some people object to the idea of the government taxing money it gives out to help people in need, but a lawyer can help you maximize the benefits you receive.
The amount of disability aid you are given depends on a number of factors, including your pay before disability and any income you may still be receiving. Likewise, the percentage of your disability income that can be taxed varies, too. The SSA uses the idea of your “combined income” in making this decision: your total income plus half your disability income. When this is over a certain point, more of your disability can be taxed.
As of 2010, filing taxes as an individual with a combined income of less than $25,000 will not result in any of your disability being taxed. Up to half of your disability may be taxable for a combined income between $25,000 and $34,000. Past that, it increases to 85%. Remember that this refers to how much of your income can be taxed, not how much will be taxed. The amount of your disability that is actually taxed may not be that high.
The skilled Indianapolis social security lawyers of the Hankey Law Office are not tax advisors, but they have decades of experience handling disability cases, allowing them to provide you with the information that you need. Many people can help you with your taxes; only an expert lawyer can help you ensure you receive the full disability benefits you need. To discuss your case with an experienced disability lawyer, contact the Hankey Law Office today at (800) 520-3633.