Social Security Disability Benefits May Be Taxable in Alabama and Florida

Your taxes could be affected

After all the stress and red tape you may encounter when dealing with the Social Security Administration (SSA), it is often a great relief to finally obtain your Social Security disability benefits. But once you have your disability benefits, it is important to understand how your taxes and other benefits and resources are affected.

Income-TaxesAt Byron A. Lassiter & Associates, our Social Security disability taxable attorney in Pensacola and Mobile is not just a legal specialist. We are devoted to providing real help to disabled individuals who need and deserve disability benefits, including helping you understand your rights and options and how they will affect you.

Disability benefits and tax consequences

One of the most common questions disabled workers ask our Mobile social security disability taxable lawyer after filing for SSDI or SSI benefits is, “Do I have to pay taxes on my Social Security disability benefits?” Whether your benefits are taxable depends on your individual circumstances, including your overall income and your filing status. While income minimums change, as of 2012 you may have to pay federal taxes under the following circumstances:

  • You must pay federal taxes on your Social Security disability benefits if you file a federal tax return as an individual and your total income is more than $25,000
  • You must pay federal taxes if you are filing jointly and you and your spouse have a total income of more than $32,000
  • You are married but filing separately

However, if your Social Security and/or Supplemental Security Income (SSI) benefits are your only source of income, you may not have to file a federal income tax return. In addition, Baldwin County social security disability taxable attorneys note that you do not have to pay State taxes on Social Security benefits in Alabama.

Disability benefits and pension benefits

In addition to taxes, Social Security disability taxable lawyers in Mobile and Pensacola warn that any pension income you earn from work that was not covered by Social Security may decrease the amount of disability benefits you receive. However, if you paid Social Security taxes at your job, your pension should not affect your benefits.

Contact experienced disability attorneys in Alabama and Florida

Understanding your eligibility for benefits, the types of benefits you may receive and how your benefits are affected by taxes, pensions and other sources of income can be complicated. At Byron A. Lassiter & Associates, we strive to make this process less complex by answering your questions, listening to your concerns and guiding you through each step of the appeals process if your benefits are denied despite your disability. To learn more about our services, please contact us online or call toll free 800.544.3568.