Do I have to pay income tax on my Social Security?
Yes, there may be an income tax requirement on your Social Security benefits that you receive. It’s income, but there are thresholds for income with the IRS and that changes from year to year. It all depends on whether or not you’re filing individually or as a spouse.
There is a potential that you’re going to have to pay income tax for your Social Security Disability benefits. I encourage all my clients to take 25% of whatever their past due benefits were on their lump sum check and set it aside in a savings account if it’s not an SSI case to make sure they have enough money for taxes on the benefits they’ve been paid just in case the IRS looks to them for compensation.