Social Disability Lawyer Blog

Stay up to date with the latest news in the world of social disability law provided by the Los Angeles based Law Office of Irene Ruzin.

How does SSDI Taxes Monthly Income?

How does SSDI Taxes Monthly Income?

Social Security Disability Benefits depend on Social Security Taxes that you are required to pay for atleast 30 working years of the total time you worked in your life. However, most people do not realize this and end up not paying enough or no social security taxes. Unfortunately, this could greatly impact your chances of being approved for SSDI benefits when needed since the SSDI benefits are Merit based as compared to need-based Medicare. This means that people who have enough work credits and social security paid taxes history will be eligible for the SSDI benefits.

Now that you know the criteria, further step would be to calculate your SSDI benefits if you do get approved. Your Average Indexed Monthly Earnings, AIME is how the SSA would calculate your monthly benefits! The AIME combined with your FICA taxes would be adjusted by the SSA through a complex formula to calculate your monthly benefits. Once done, the SSA would tax your SSDI benefits depending on your monthly income bracket as follows:


  • - Monthly Benefits Range $(0 – 2083) : 0% taxable
  • - Monthly Benefits Range $(2084 – 2833) : 50% taxable
  • - Monthly Benefits Range $(2834 and up) : 85% taxable

Married Couples

  • - Monthly Benefits Range $(0 – 2666) : 0% taxable
  • - Monthly Benefits Range $(2667 – 3666) : 50% taxable
  • - Monthly Benefits Range $(3667 and up) : 85% taxable

Social Security Disability is a vigorous but very fine package run under the federal government that acts as an economic savior at times of disability crises. However, due to a vast number of applications and people not covered under the Blue Book Disability also applying to the SSDI benefits, only 20% of the applications are approved. But, here is the good news. Since social security benefits are earned benefits through government run (is social security insurance) insurance program, SSDI, what you receive after being approved depends primarily on the wages that you had been paying Social Security taxes on.

According to a research the estimated benefits receivable for a worker under Social Security Benefits in Januray 2019 is around $1234 per month. A beneficiary however, can receive more than this or up to $2861 if the person under whose SSDI he is receiving payments paid a huge security tax on his wages.

If you become eligible and are going to receive SSDI benefits, there would be several factors that would determine how much you will be paid. This includes the

  • - Whether you qualify under SSDI
  • - Income wages (yours or your spouse's) if you receive your spouse's SSDI read here

It would not depend on

  • - Household income
  • - Severity of your disability

Many people believe that they would have to wait a certain period of time after they become disabled in order to be able to apply for SSDI benefits. That is a not true because you can and you should apply for the benefits as soon as you are disabled. Since the application process itself can take three to five months, that period counts among the waiting period of 5 months mandatory after becoming disabled under SSA's rules for qualifying under Blue Book's disability.

You can find out more through direct consultation or hiring an attorney for your disability case at Law Office of Irene Ruzin California.

Social Security Disability benefits for low IQ
How to calculate your SSDI income/payments?

Related Posts



No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Monday, 13 July 2020