Many individuals in Pennsylvania need to rely on Social Security disability benefits in order to make ends meet. These benefits are available to individuals who are unable to work because of a disability. There are many requirements that must be met in order for an individual to be approved for these benefits. Once benefits have been approved, individuals receive monthly income from Social Security Administration. This income can be extremely important for individuals who would otherwise not have the means to pay for their basic necessities.
However, once benefits have been approved there are additional considerations that individuals in Pennsylvania need to be aware of. Some of these considerations are important for maintaining benefits, while others are important in other areas. In particular, individuals should understand how SSD benefits will affect their taxes.
According to the Internal Revenue Service, SSD benefits may be taxable in some situations. However, people should know that Supplemental Security Income benefits are not taxable.
In order to determine whether or not a person’s SSD benefits are taxable, individuals must compare their base income with the amounts listed with the IRS. To determine an individual’s base income, people need to add one half of their Social Security benefits to their income from all other sources. This includes income from a person’s spouse.
If a person’s income is at or above the threshold listed by the IRS, then a portion of that person SSD benefits may be taxable. For married individuals filing jointly, the threshold is $32,000. For people filing separately, the threshold is $25,000. If a married individual files separately, but lives with the person’s spouse at any point in the tax year, the threshold is $0.
There are many complicated legal issues that must be kept in mind as individuals apply for and receive Social Security disability benefits. Individuals in Pennsylvania should consult with an attorney to make sure they understand their legal rights.