IRS Highlights For People With Disabilities: Know Benefits & Filing Requirements

When dealing with taxes, staying updated with IRS highlights is essential, especially if you have a qualifying disability and receive SSDI or SSI benefits.

Whether you’re on disability benefits and working or not, this information is crucial for managing your finances efficiently.

Publication 907: “Tax Highlights for Persons with Disabilities” Publication 524: “Credit for the Elderly or the Disabled” Publication 525: “Taxable and Nontaxable Income”

People With Disabilities

In general, if you only receive Social Security Disability Insurance (SSDI), it is unlikely that you will have to pay taxes.

SSDI And Taxes

However, if you have other sources of income, your SSDI benefits may become taxable. This usually occurs when your combined income exceeds specific thresholds.

SSDI And Taxes

$25,000 if you are single, a qualifying surviving spouse, or a head of household $25,000 if you are married filing separately and lived apart from your spouse for the entire year

Taxable Income Thresholds

$32,000 if you are married filing jointly $0 if you are married filing separately and lived with your spouse at any time during the year

Taxable Income Thresholds

Supplemental Security Income (SSI) benefits are not taxable. Therefore, recipients of SSI benefits do not need to worry about paying taxes on these payments.

SSI Benefits

Filing Requirements

If your total income, including SSDI and other earnings, exceeds the specified thresholds, you must file a tax return.

Filing Requirements

Be diligent in reporting all income sources to comply with IRS regulations and avoid potential penalties.

Filing Requirements

Staying informed about IRS updates and utilizing available resources like Publications 907, 524, and 525 can significantly benefit individuals with disabilities.

Filing Requirements

Managing your ABLE accounts wisely and understanding the tax implications of your SSDI benefits will help you optimize your finances and avoid unnecessary tax burdens.

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