You're working, and you've got a family that depends on you - both now and down the road. Where do you invest your money? Do you borrow against the equity in your house? Through a preferred provider relationship with USAA, The American Legion can provide expert financial advice to just about any question.
Good question. How about “maybe” as a definitive answer? Two types of government benefits include SSDI (Social Security Disability Insurance) and SSI (Supplemental Security Income). SSDI provides income for the disabled, while SSI may provide additional income for the disabled or for elderly folks who demonstrate financial need. SSI is not taxable, but SSDI is taxable under the same rules as Social Security retirement. Check out IRS Publication 915 for more information.
So, in a nutshell, if you don’t have any other income, your SSDI should not be taxable. However, if you do have income from other sources, such as investments, military retirement, part-time work, etc., taxes could be due. Basically, if half your Social Security plus all of your other income is more than $25,000 (single) or $32,000 (married, filing jointly), a portion of your benefits will be taxable.