Tax season for 2018 is finally here, and paying Social Security disability taxes creates a serious headache for some folks.
Non-retired people who are currently working as employees have a relatively easy time paying their taxes. Their employer first sends them a W-2 form. This shows how much money they earned that year and how much was deducted for state and federal income taxes. They then file their W-2 along with their tax return.
However, if you receive Social Security disability benefits, filing your taxes can be a bit more complicated. The Law Office of Jack G. Lezman can assist you with your Social Security disability taxes and your income tax return this season. An attorney can also address all of your legal questions and concerns.
Taxable Amount of Benefits
Just because you received social security disability benefits last year does not necessarily mean that you will have to pay tax on them this year. You may not have to pay taxes on your Social Security disability benefits under the following circumstances. You:
- Make $25,000 or less per year and file your income taxes individually
- Make less than $32,000 per year and file your taxes jointly
In any case, you will never have to pay any taxes on more than 85% of the Social Security disability benefits that you receive in a given year. For example, individuals whose income levels exceed $25,000 per year, but are less than $34,000 per year ($32,000 and $44,000, respectively, for individuals who file their taxes jointly) will only have to pay Social Security disability taxes on 50% of their income. However, individuals whose income exceeds $34,000 (or $44,000, for individuals who file their taxes jointly) will be required to pay Social Security disability taxes on 85% of their income.
The entire amount of income tax that you will pay in a given tax year also depends upon a variety of other factors. These factors include any other income that you may have earned over the course of the year, along with tax deductions to which you may be entitled. A Social Security disability taxes lawyer can assist you with your taxes and can help you pay out as little money as possible.
Receiving a Back Payment From the Social Security Administration
In some instances, the Social Security Administration – or SSA – will issue you a lump sum back payment. This is especially true in instances where the social security recipient just started receiving disability benefits. One option for dealing with a back payment you received from the SSA is to claim the entire payment as income on your current tax return for a single year. This can actually be a serious mistake, though, because it will automatically place you in a higher tax bracket than you were in before. Consequently, you will likely have to pay significantly more taxes for the year. The better option is usually to file amended tax returns for past years which the back payment covered. You should only claim the back payment amount for this year on your current tax return.
Subtracting Taxes From Your Disability Payments
If you receive disability payments over the course of a given year, the SSA is not required to withhold Social Security disability taxes from your checks. In that case, you will need to make sure that you withhold enough money from your checks in order to pay your taxes at the end of the year. If you contact the SSA directly, they will be able to withhold taxes from your disability payments as they issue them to you. This can ultimately save you a lot of aggravation come tax time.
Completing Your Tax Return
If you received Social Security disability benefits during 2017, completing your tax return can be confusing. This is especially true without the assistance of a tax attorney or other tax professional.
Social Security disability payment recipients will receive a Form SSA-1099. This form will show exactly how much the government paid you in Social Security disability benefits over the course of the previous year. You then use the information on the Form SSA-1099 to complete your income tax return. A tax lawyer or tax professional can also help you determine what, if any, deductions you can take to lessen your tax burden.
Contact Jack G. Lezman Today for More Information About Social Security Disability Taxes
Filing income taxes can be confusing enough, and Social Security disability benefits can potentially make a bad tax situation worse. At The Law Office of Jack G. Lezman, we understand and appreciate this confusion and can help to shed some light on disability tax issues and concerns. If you have questions about filing your income taxes, don’t go it alone. Contact a Social Security disability taxes attorney at The Law Office of Jack G. Lezman by calling 704-544-8202, for a free initial consultation and case evaluation.
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