Taxation and Social Security Benefits
If you are currently receiving Social Security or Social Security Disability Insurance benefits every month, you are likely to also get a Form SSA-1099 from the federal government. This document tells you the total amount of your benefits you are receiving. However, it doesn’t tell you important information regarding taxes: how much of your total benefits are taxable, what is the tax rate, or if your benefits are taxable at all.
If you would like to determine how much tax you will have to pay on your benefits, use the IRS Free File to e-file your tax return (that is, if your annual income is not more than $62,000). This software will determine the taxable components of your benefits for you.
On the other hand, if you want to compute manually, add half of your Social Security benefits with all other income (including tax-exempt interest) and compare it to the base amounts that are excluded from the tax; anything over the base amount may be subject to tax.
If you ever have questions that need to be answered in regards to your social security disability benefits, the expert lawyers of our legal firm are available for consultation. Contact our attorneys at the Hankey Law Office in Indianapolis by calling our offices today at (317) 634-8565 if you need legal assistance when it comes to filing for or appealing Social Security disability benefits.