- Social Security disability benefits are available to certain workers who suffer long-lasting disabilities. According to the Social Security Administration, only workers who have a medical condition that prevents them from working --- that is expected to last one year or longer or result in death --- are eligible for SSD benefits. Workers must also fulfill certain minimum work requirements to be eligible for disability benefits: if you haven't spent enough time contributing to the Social Security system by working and paying taxes, you are not eligible for benefits. The exact amount of work required to receive benefits varies depending on your age.
- Workers who receive SSD benefits may have to pay taxes on a portion of their benefits. The Social Security Administration says that single taxpayers may owe income taxes on up to 50 percent of their benefits if "combined income" is between $25,000 and $34,000 and may owe taxes on up to 85 percent of benefits if combined income is $34,000 or higher. Combined income is adjusted gross income, plus half of your social Security benefits and nontaxable interest.
- According to the Social Security Administration, married taxpayers filing joint returns may have to pay income taxes on up to 50 percent of their benefits if combined income is between $32,000 and $44,000. Up to 85 percent of benefits may be taxable for married couples filing jointly if income exceeds $44,000.
- The Social Security Administration states that Social Security benefit recipients will receive Form SSA-1099, which can be used to determine whether you owe taxes on Social Security benefits when you fill out your income tax return. Taxes on Social Security benefits can be paid automatically by requesting tax withholding when you sign up for benefits or by submitting quarterly estimated tax payments to the IRS.
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