Practice Areas

Below are some initial questions many clients have when they first contact Cavey & Barrett. The questions below may address many initial concerns you may have. If you don't find the answers here, you should contact us for answers to questions specific to your case. The consultation is free.

Social Security Disability (SSD)

Q: Do I Have to Pay Income Tax on My Social Security Disability Benefits?

A: At Cavey and Barrett we are not tax lawyers and would suggest that you seek guidance from a tax professional.

The Social Security Administration is going to send you a 1099 form explaining how much of your Social Security benefit was received in a lump sum, including payments for prior years and the attorney fee award.

The basic rule is that up to 50% of Social Security benefits are taxable if your provisional income (adjusted gross income tax exempt interest) and then half of your Social Security benefits is greater than a base amount of $25,000 for single tax payers or $32,000 for married taxpayers jointly. At this level taxes are payable on a lesser of 50% of the Social Security benefits received or one half of the difference between the provisional income and the applicable base amount.

If, however, you have provisional income over $34,000 and are a single tax payer or is a married tax payer filing jointly with a provisional income over $44,000 or married tax payer of files separate returns but live apart, the taxes are completely different. The income tax is payable on a lesser:

a) 85% of the Social Security benefits

OR

b) the total of:

1. 85% of the difference between provisional income and the applicable adjusted base amount ($34,000/$44,000) PLUS

2) the lesser of: half of the benefits or $8,500 for singles or $6000 for married couples filing jointly.

The adjusted base amount for married people filing separately but living together is zero. Therefore, the taxes are payable on the lesser of 85% of the benefits or 85% of the provisional income. If you have any questions, regarding the taxation of Social Security Disability benefits we at Cavey and Barrett, can provide you guidance so that you can speak to the right tax consultant. Contact us today to discuss your Social Security Disability benefits.

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Cavey & Barrett
821 16th Street North
Post Office Box 7539
St. Petersburg, FL 33734-7539
Phone: (727) 894-3188
Fax: (727) 821-2751

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Workers' Compensation
727-894-3188

Long Term Disability
727-897-9053

Social Security Disability
727-897-9117