Taxation of Social Security benefits has been a hot topic around here recently! Unlike a lot of other disability payments, Social Security could be taxable and included on your income tax return. In fact, Social Security disability is treated, for income tax purposes, exactly as other Social Security benefits. So if you’re single and one-half of your Social Security disability, plus all your other income (e.g., pension, interest, dividends, wages and even tax-exempt interest) exceeds $25,000 ($32,000 for joint filers), then at least a portion of your benefits will be taxable. Good luck.