SSDI and taxes

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alluneedislove

Guest
I finally got approved for SSDI. AWESOME Right!?
I am also getting back pay. YAY! The question is what about taxes how much will i actually get per month? i already know that 50-85% will be taken from the back pay. Which really sucks! but i am more worried about monthly, my husband makes over the 44,000. limit so do they take 85% of my monthly check which would leave me with 15% ha how do they expect people to live on that? No wonder Social Security is going broke!! SERIOUSLY IM FREAKING OUT!!!

What happens with my daughters money does that get taxed 85% too? I just wanna cry, and my husband is freaking out too. We thought with this money that we could at least get medical bills paid and some other debt. I guess thats not going to happen.

Please any info is helpful
 
A

alluneedislove

Guest
I finally got approved for SSDI. AWESOME Right!?
I am also getting back pay. YAY! The question is what about taxes how much will i actually get per month? i already know that 50-85% will be taken from the back pay. Which really sucks! but i am more worried about monthly, my husband makes over the 44,000. limit so do they take 85% of my monthly check which would leave me with 15% ha how do they expect people to live on that? No wonder Social Security is going broke!! SERIOUSLY IM FREAKING OUT!!!

What happens with my daughters money does that get taxed 85% too? I just wanna cry, and my husband is freaking out too. We thought with this money that we could at least get medical bills paid and some other debt. I guess thats not going to happen.

Please any info is helpful
 
A

alluneedislove

Guest
I finally got approved for SSDI. AWESOME Right!?
<br />I am also getting back pay. YAY! The question is what about taxes how much will i actually get per month? i already know that 50-85% will be taken from the back pay. Which really sucks! but i am more worried about monthly, my husband makes over the 44,000. limit so do they take 85% of my monthly check which would leave me with 15% ha how do they expect people to live on that? No wonder Social Security is going broke!! SERIOUSLY IM FREAKING OUT!!!
<br />
<br />What happens with my daughters money does that get taxed 85% too? I just wanna cry, and my husband is freaking out too. We thought with this money that we could at least get medical bills paid and some other debt. I guess thats not going to happen.
<br />
<br />Please any info is helpful
 
E

ej0820

New member
I get SSDI and have for a year now (a tax season's worth) and I honestly can't answer your questions. <img src="i/expressions/face-icon-small-sad.gif" border="0">

For me, I started getting payments in march of last year (including back pay). I got a letter stating what I would get monthly and how much my backpay was for. Both amounts were deposited exactly into my back account. I don't know if the totals then that were in the letters were already taxed or what. When I filled out my taxes this year, I got a W-2 type of form (I forget what form it actually goes by) for my total SSDI and had to put that total into my taxes. It turned out that that amount (all my monthly deposits and backpay total) wasn't taxable. ?!?

From what I've read, and DO NOT quote me on this, I assumed that if your yearly income (including SSDI, back pay and employment) was over $25,000 then you would have to pay taxes on the SSDI...come tax time, not monthly. I don't know if that's accurate or if that's different if you're married and have a dependent.

I'm sorry I couldn't be much help. Julie, who frequents this site, might be able to help you (she's a whiz with this stuff). Hopefully she'll see this and respond! I know her website is dafcf.org and there's contact info listed on the site, including and email address. If you're in a hurry for info, maybe shoot her an email. That might get you a more accurate response, too.
 
E

ej0820

New member
I get SSDI and have for a year now (a tax season's worth) and I honestly can't answer your questions. <img src="i/expressions/face-icon-small-sad.gif" border="0">

For me, I started getting payments in march of last year (including back pay). I got a letter stating what I would get monthly and how much my backpay was for. Both amounts were deposited exactly into my back account. I don't know if the totals then that were in the letters were already taxed or what. When I filled out my taxes this year, I got a W-2 type of form (I forget what form it actually goes by) for my total SSDI and had to put that total into my taxes. It turned out that that amount (all my monthly deposits and backpay total) wasn't taxable. ?!?

From what I've read, and DO NOT quote me on this, I assumed that if your yearly income (including SSDI, back pay and employment) was over $25,000 then you would have to pay taxes on the SSDI...come tax time, not monthly. I don't know if that's accurate or if that's different if you're married and have a dependent.

I'm sorry I couldn't be much help. Julie, who frequents this site, might be able to help you (she's a whiz with this stuff). Hopefully she'll see this and respond! I know her website is dafcf.org and there's contact info listed on the site, including and email address. If you're in a hurry for info, maybe shoot her an email. That might get you a more accurate response, too.
 
E

ej0820

New member
I get SSDI and have for a year now (a tax season's worth) and I honestly can't answer your questions. <img src="i/expressions/face-icon-small-sad.gif" border="0">
<br />
<br />For me, I started getting payments in march of last year (including back pay). I got a letter stating what I would get monthly and how much my backpay was for. Both amounts were deposited exactly into my back account. I don't know if the totals then that were in the letters were already taxed or what. When I filled out my taxes this year, I got a W-2 type of form (I forget what form it actually goes by) for my total SSDI and had to put that total into my taxes. It turned out that that amount (all my monthly deposits and backpay total) wasn't taxable. ?!?
<br />
<br />From what I've read, and DO NOT quote me on this, I assumed that if your yearly income (including SSDI, back pay and employment) was over $25,000 then you would have to pay taxes on the SSDI...come tax time, not monthly. I don't know if that's accurate or if that's different if you're married and have a dependent.
<br />
<br />I'm sorry I couldn't be much help. Julie, who frequents this site, might be able to help you (she's a whiz with this stuff). Hopefully she'll see this and respond! I know her website is dafcf.org and there's contact info listed on the site, including and email address. If you're in a hurry for info, maybe shoot her an email. That might get you a more accurate response, too.
 
C

cf4life

New member
I think you are over thinking this and confusing yourself. :) I believe how you should be reading this is that 85% is taxable at your tax rate based on your total household income. The other 15% is not considered taxable. They are not taking 85% for taxes. That is just the part you need to pay taxes on.
 
C

cf4life

New member
I think you are over thinking this and confusing yourself. :) I believe how you should be reading this is that 85% is taxable at your tax rate based on your total household income. The other 15% is not considered taxable. They are not taking 85% for taxes. That is just the part you need to pay taxes on.
 
C

cf4life

New member
I think you are over thinking this and confusing yourself. :) I believe how you should be reading this is that 85% is taxable at your tax rate based on your total household income. The other 15% is not considered taxable. They are not taking 85% for taxes. That is just the part you need to pay taxes on.
 
A

alluneedislove

Guest
Thanks for posting the info you know.

Julie i looked on the IRS website and the Social security website. It states that if your married and make between 32-42,000.you can get taxed up to 50% and if you make over 44,000 you can get taxed up to 85%. Or maybe im reading it wrong thinking that taxable income means you taxed on all all of it up to 85%. What Cf$life makes sense. Julie will you explain this to me?
 
A

alluneedislove

Guest
Thanks for posting the info you know.

Julie i looked on the IRS website and the Social security website. It states that if your married and make between 32-42,000.you can get taxed up to 50% and if you make over 44,000 you can get taxed up to 85%. Or maybe im reading it wrong thinking that taxable income means you taxed on all all of it up to 85%. What Cf$life makes sense. Julie will you explain this to me?
 
A

alluneedislove

Guest
Thanks for posting the info you know.
<br />
<br />Julie i looked on the IRS website and the Social security website. It states that if your married and make between 32-42,000.you can get taxed up to 50% and if you make over 44,000 you can get taxed up to 85%. Or maybe im reading it wrong thinking that taxable income means you taxed on all all of it up to 85%. What Cf$life makes sense. Julie will you explain this to me?
 
J

JustDucky

New member
I am thinking it that the SS is 50% taxable at that point, they don't take half of it...just means that half will be taxed. It is true that after There is a work sheet that you can do to see exactly how much of your SS income will be taxed. If you are doing it electronically with programs such as Turbo Tax, H &R Block, they usually guide you through the various types of income and do the calculations for you (you enter the W2's and SS 1099 forms) As far as your kids, that income is not counted with yours. It is their money so to speak, you handle the money. Every year, you will get a form from SS asking what you did with the money and if any of it was put into a savings account for them and how much if you did. That money is not taxable, at least my kids' SS benefits never were because the amounts weren't high enough.
Here is a link that may be helpful to you:
<a target=_blank class=ftalternatingbarlinklarge href="http://www.irs.gov/newsroom/article/0,,id=179091,00.html
">http://www.irs.gov/newsroom/ar.../0,,id=179091,00.html
</a>
Good luck
Jenn
 
J

JustDucky

New member
I am thinking it that the SS is 50% taxable at that point, they don't take half of it...just means that half will be taxed. It is true that after There is a work sheet that you can do to see exactly how much of your SS income will be taxed. If you are doing it electronically with programs such as Turbo Tax, H &R Block, they usually guide you through the various types of income and do the calculations for you (you enter the W2's and SS 1099 forms) As far as your kids, that income is not counted with yours. It is their money so to speak, you handle the money. Every year, you will get a form from SS asking what you did with the money and if any of it was put into a savings account for them and how much if you did. That money is not taxable, at least my kids' SS benefits never were because the amounts weren't high enough.
Here is a link that may be helpful to you:
<a target=_blank class=ftalternatingbarlinklarge href="http://www.irs.gov/newsroom/article/0,,id=179091,00.html
">http://www.irs.gov/newsroom/ar.../0,,id=179091,00.html
</a>
Good luck
Jenn
 
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