Q:

Are federal disability payments taxable?

A:

Quick Answer

Social Security disability benefits are not taxable if half of the disability amount plus other income is less than $25,000 for single taxpayers or taxpayers filing head of household, according to the Internal Revenue Service. The amount goes up to $32,000 for married taxpayers filing a joint return.

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Full Answer

Up to 50 percent of the disability payment amount is taxable if income is greater than these levels, advises the IRS. Up to 85 percent of the benefit amount is taxable if the half of the disability amount plus other income is greater than $34,000 for single taxpayers, those filing head of household or married filing separately, or $44,000 for married taxpayers filing a joint return. As of March 2015, all Social Security benefits are taxed in the same way, whether the benefits are for disability, retirement or survivor’s benefits.

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