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If a person is on social security disabilty do they have to pay income taxes on it at the end of the year? |
If a person is on social security disabilty do they have to pay income taxes on it at the end of the year? It depends on how much taxable income you have. When I first went out on permanent disability, I did have to pay taxes on the money I got from my employer's long term disability. However, over the next few years, the personal exemption and the standard deduction grew to exceed my taxable income and I stopped having to pay taxes on it. The IRS used to make people file an "information return" for when they had income but owed no taxes on it. However, they stopped that years ago, and I don't have to file anything with the IRS. I live in North Carolina. They give an additional exemption for people who have MS like I do. The standard deduction and the additional exemption exceed my taxable income, so I don't have to file returns with the state, either. And before anyone gets too envious over no taxes, remember that you have to be really low income before you don't have to pay taxes. Source(s): personal experience It dependss on how much money you make or your spouse makes at another job. Only if it exceeds a certain amount, or you are filing jointly with someone that put you over the combined amount. You may still want to file to obtain some tax credits for the disabled. http://www.irs.gov/faqs/faq-kw174.html... Is this a riddle? Ask your local tax preparer. They are the most qualified to answer this question since it will depend on where you live as well. Different states, different laws, federal laws apply to all states. |
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