“Thought for the Day” #687 – by Stephen R. Elville, J.D., LL.M.

March 17, 2016

If SSDI benefits are subject to tax, what portion is taxable? The short answer is either 50 percent (50%) or eighty-five percent (85%), depending on your income. If one-half (1/2) of a single person’s benefit plus the rest of his or her income is less than $34,000 (this threshold is $44,000 for a married couple filing jointly), then only 50 percent (50%) of his or her SSDI benefit will be taxed. If a beneficiary’s income plus one-half (1/2) of his or her benefit exceeds these thresholds, then 85 percent (85%) of the benefit is taxable.