If you are disabled and are collecting Social Security disability benefits, you will have to pay a federal income tax on your disability benefits. Figuring your income tax on disability benefits for your tax returns can be complex and you may be wrongfully taxed on your benefits if you are not aware of certain criteria that must be met. If you’re an Indiana resident collecting disability benefits, you should speak with an Indianapolis social disability lawyer for help.
Criteria for Income Tax on Disability Benefits
If you make more than $25,000 a year and file your tax returns as an individual or are married and file jointly with an income greater than $32,000 a year, you will have to pay federal income taxes. Your unique circumstances will have an impact on the income tax on your disability benefits.
Some factors that will be taken into account:
- Child benefits
- Attorney fees
- Delinquent taxes
- Long-term disability benefits
- Voluntary tax withholdings
- Workers’ Compensation
- Spouse benefits
You should also keep in mind that although you will have to pay federal income tax on disability benefits that you are receiving, you may or may not have to pay state or local income taxes.
Additionally, the elderly and disabled incur income tax liability from a variety of unexpected sources which can create trouble at tax time. Each state has its own rules on taxing disability benefits and that is why it will be in your best interest to seek legal guidance from an Indianapolis social disability lawyer who can help you receive fair and full disability benefits.
A Helping Hand from an Indianapolis Social Disability Lawyer
When you have complications with your Social Security disability benefits claim, the help of an Indianapolis social disability lawyer is crucial to getting the assistance you need. In order to get back on track with your Social Security benefits claim, download a copy of our complimentary book, 8 Mistakes to Avoid When Filing for Social Security Disability Benefits, then contact a Social Security lawyer at Hensley Legal Group for a no-cost consultation at (317) 472-3333.