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Paying Taxes On Social Security Disability Benefits

Published July 14, 2015 by Matt Fendon Law Group | Firm News

Many people ask us whether they have to pay taxes on Social Security disability benefits. We typically refer them to their accountant or CPA to answer this question.

However, in reality, Social Security disability benefits are taxable to the extent that a person’s income exceeds $25,000 per year with the benefit. That is in the case of a single taxpayer or $32,000 for a married taxpayer filing jointly.

It is important for people to know that Social Security will report disability benefits to the Internal Revenue Service.

It is also important to note that Social Security benefits are taxable to the person who receives the benefits. In the case of a child who receives benefits, those benefits are taxable to the child and not to the child’s mother or father.

Another good piece of advice is that Social Security attorneys fees can be deductible to the extent that a person’s social security benefit is taxable.

Again, please formally discuss these tax issues with your CPA or tax preparer. Fendon Law Firm does not practice in the area of tax law, nor do we put ourselves out there to be experts in the field.

We are experts in the field of Arizona workers’ compensation and Social Security disability law. Please feel free to contact any of our offices including Phoenix, Tucson, Prescott Valley, and Flagstaff. We accept cases state wide. We are the largest family owned Worker’s Compensation and Social Security firm in the state of Arizona. We pride ourselves on treating our clients like family, because we are family.

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