Social Security Benefits And How They Are Taxed
At the St. Louis law firm of Crowe & Shanahan, our Missouri Social Security Disability lawyers provide our clients with the facts about their Social Security benefits, including Social Security Disability Insurance (SSDI) and Supplemental Security Income benefits. That includes the potential impact on their income taxes. Many of our potential clients do not realize that SSDI benefits are subject to federal income tax for many but not all people, but SSI benefits are not.
Our Missouri Social Security Disability lawyers do not provide tax advice, but instead encourage our clients to seek guidance from competent tax professionals. For more information, please contact us online or by calling 314-231-6660 or toll free at 1-877-213-7793.
Taxation Of Your Social Security Benefits
Being approved for SSDI benefits is a relief for all of our clients. A lengthy and complicated process is now over. They are ready to move on with a life that has a little more financial security. However, as they collect those Social Security benefits throughout the year, they must report that income when tax time comes.
According to the National Organization of Social Security Claimants’ Representatives (NOSSCR), the basic rule for taxation of Social Security benefits is that up to half are taxable if your “provisional income” is more than the base amount, which is $25,000 for single taxpayers and $32,000 for married taxpayers filing jointly. This equation becomes more complex as your level of income increases. Higher earning households may have to pay tax on as much as 85% of their Social Security benefits. You may also be able to deduct your attorney fees.
Contact Our Missouri Social Security Disability Attorneys
To schedule an appointment for more information about the possible tax consequences of SSDI or SSI payments, please contact the Social Security disability lawyers at Crowe & Shanahan today.