Social Security Disability back pay and earnings over $25K

Brooke
Brooke Member Posts: 1 Newcomer

Do I have to pay federal income taxes on $20K SSDI back pay I received this year in February and any regular monthly SSDI income totaling $23,500?

Best Answer

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 340
    Answer ✓

    Hi,

    SSDI is Social Security Disability Income, which is still taxable. I am assuming the "back pay" you are talking about was a lump sum for 2023. SSI or Supplemental Security Income is not taxable.

    When you report the SSA-1099 there is a question if there was a lump-sum Social Security payment in 2024 for 2023 or prior years? Answer Yes and continue and fill out the information. That way the program can calculate what is taxable for this year and what is not based on the information you enter.