SSDI Recipients Might Want To File Taxes Even if They Don't Have to This Year. Here's Why

Social Security Disability Insurance recipients may need to file taxes this year, whether they're required to or not. While almost a third of SSDI beneficiaries are required to pay taxes on benefits due to additional income, it's not the case for everyone. But that doesn't mean you can't benefit from filing this year. 

If you don't need to file, you could still potentially be leaving certain tax credits on the table. And if you're not sure whether you need to file, we have you covered. 

Below, we'll go over a few reasons why you might want to file even if you don't have to, including tax credits you may be eligible for, and how to find out whether you need to file for this year. For more, here's the best tax software for doing your taxes yourself and tips on choosing the right tax preparer this year. 

Are your Social Security benefits are taxable? Here's how to find out

To find out whether your Social Security benefits are taxable, you'll need to identify if one-half of your Social Security benefits and any other income is greater than the base amount of your filing status. 

Here's how the IRS breaks down the base amount for filing status: 

• $25,000 if you're single, head of household or a qualifying surviving spouse.
• $25,000 if you're married filing separately and lived apart from your spouse for the entire year.
• $32,000 if you're married filing jointly.
• $0 if you're married filing separately and living with your spouse at any time during the tax year.

If you have additional forms of income -- whether it's wages from another job, self-employment, interest or dividends -- these should be factored into your calculation. If you are above the base amount for your filing status and need to pay federal income taxes, the Social Security Administration (SSA) will allow you to withhold taxes from your monthly benefit payments so you don't have to pay a large bill at tax time. 

A simple way to determine if your benefits are taxable is to look at your gross income, your total pretax earnings for the year. 

You will need to file a return for the 2024 tax year:

• If you are an unmarried senior at least 65 years old and your gross income is more than $14,700. 
• If you are filing a joint return with a spouse who is also 65 or older and your gross income is more than $28,700.

How much will I be taxed?

Another way to find if your Social Security benefits are taxable is to look at your combined income, which includes your adjusted gross income, nontaxable interest and half of your Social Security benefits together. 

• If you are a single tax filer and your combined income is between $25,000 and $34,000, the SSA says you may have to pay income tax on up to 50% of your benefits.
• If you are a single tax filer and your combined income is more than $34,000, you may have to pay income tax on up to 85% of your benefits. 
• If you are filing a joint return and your combined income is between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits.
• If you are filing a joint return and your combined income is more than $44,000, you may have to pay income tax on up to 85% of your benefits. 
• If you are married filing separately and didn't live with your spouse last year, your Social Security benefits are taxed as if you were a single filer.
• If you are married and filing separately while living with your spouse you probably will have to pay taxes on your benefits. 

Finally, you can view Notice 703 from the SSA to see if your Social Security benefits are taxable. 

On line 6b of Form 1040 or Form 1040-SR, you will report the taxable portion of your Social Security benefits.

Don't have to file? You might want to anyway

Some SSDI recipients might not have to file taxes this year, but they might want to anyway. The main reason, and the most obvious, is that you may qualify for a refund. 

The other benefit that would come with filing your taxes is that you may qualify for certain tax credits, which can sometimes lead to a refund. If you qualify, you could receive the earned income tax credit, the child tax credit or child and dependent tax credits. The earned income credit is fully refundable if you don't owe any taxes. 

Where do I find my Social Security benefit amount?

In order to make the appropriate calculations for determining if you need to file a tax return, you'll need your full Social Security benefit amount. Luckily, you don't have to tally everything yourself. 

The Social Security Administration will send out a benefit statement via snail mail that will give you your benefit amount for 2024. If you didn't get it or lost it, you can view your benefit statement by logging into your My Social Security account online. 

For more, don't miss how you could lose your Social Security benefits and the Social Security Disability Insurance payment schedule.