Florida Social Security Disability

Generally, disability benefits are not considered taxable income.  That being said, there are exceptions.  Some people receive benefits for several years of disability because they were not approved until long after the disability began. You should know the following: SSA-1099. Social Security is required to send each benefit recipient an SSA-1099 by February 1 of the following year, specifying how much of the Social Security benefit received in the lump sum was really a payment for some prior year or years. The 1099 also lists the attorney fee. These SSA-1099 forms are often inaccurate, and the taxpayer must use award notices to double check the 1099.

The Basic Rule. Up to 50% of Social Security benefits are taxable if total “provisional income” (adjusted gross income, tax-exempt interest and one half of Social Security benefits) exceeds a base amount: $25,000 for single taxpayers and $32,000 for married taxpayers filing jointly. At this level, taxes are payable on the lesser of (1) 50% of Social Security benefits received, or (2) one half of the difference between provisional income and the applicable base amount. Fortunately, this is the end of the income taxation picture for most recipients of disability benefits.

Because there are additional circumstances which may apply in your case, it is best to discuss your options with a tax professional who can fully advise you as to the appropriate reporting requirements.  If you have questions about your Social Security Disability claim, please feel free to give me a call at 352-629-0480 or visit our website at www.ocalaw.com