I have question about reporting taxes for ssdi monthly benefits..
I'm married and have a child about 5 years old
My wife is working and makes under $30,000 each years.
We always did joint tax return even I have no incomes but I finally got ssdi benefits and it says my payments will be starts March 1 2015.
My ssdi monthly benefits will be about $850 each month.
I want to know that do I need to report this monthly benefits end of each year?
Is ssdi benefits are considered as income or compensation because you are disabled.
Please tell me if I need to report this ssdi benefits end of each years when I do tax return.. or not
The following is from IRS:
Are Your Social Security Benefits Taxable?
IRS Tax Tip 2014-23, February 28, 2014
Some people must pay taxes on part of their Social Security benefits. Others find that their benefits aren’t taxable. If you get Social Security, the IRS can help you determine if some of your benefits are taxable.
Here are seven tips about how Social Security affects your taxes:
If you received these benefits in 2013, you should have received a Form SSA-1099, Social Security Benefit Statement, showing the amount.
If Social Security was your only source of income in 2013, your benefits may not be taxable. You also may not need to file a federal income tax return.
If you get income from other sources, then you may have to pay taxes on some of your benefits.
Your income and filing status affect whether you must pay taxes on your Social Security.
The best, and free, way to find out if your benefits are taxable is to use IRS Free File to prepare and e-file your tax return. If you made $58,000 or less, you can use Free File tax software. The software will figure the taxable benefits for you. If your income was more than $58,000 and you feel comfortable doing your own taxes, use Free File Fillable Forms. Free File is available only at IRS.gov/freefile.
If you file a paper return, visit IRS.gov and use the Interactive Tax Assistant tool to see if any of your benefits are taxable.
A quick way to find out if any of your benefits may be taxable is to add one-half of your Social Security benefits to all your other income, including any tax-exempt interest. Next, compare this total to the base amounts below. If your total is more than the base amount for your filing status, then some of your benefits may be taxable. The three base amounts are:
$25,000 - for single, head of household, qualifying widow or widower with a dependent child or married individuals filing separately who did not live with their spouse at any time during the year
$32,000 - for married couples filing jointly
$0 - for married persons filing separately who lived together at any time during the year
For more on this topic visit IRS.gov.
Yes, you have to report it. There is a line on your tax return for Social Security Payments. You won't have to report for 2014 though since you are not receiving any benefits until 2015.
The information provided here is meant to be general in nature and not intended to establish an attorney-client relationship.
Expect to get a Form 1099-G in early 2016 from Social Security the payments you received in 2015. You will likely report it on Line 20 of the 1040. You may want to hire a tax preparer when it comes time to do your 2015 taxes in 2016.
Years licensed, work experience, educationLegal community recognition
Peer endorsements, associations, awardsLegal thought leadership
Publications, speaking engagementsDiscipline