If you draw Social Security Disability do you have to pay taxes out of the money you receive? I pay taxes on my 401k withdrawals and am wondering if you have to if you receive a disability check.
Thanks...
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Apr 9, 2013
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You owe federal taxes on SSDI, check your state too. You can have taxes automatically deducted from SSDI, not sure if it's just federal or includes state taxes too.
Both regular Social Security and SS Disability income is treated the same. We have to pay regular income taxes on 85% but we pay no state income taxes on it.
When you get to age 65, the disability monies come out of a different trust fund account--regular social security. But the amount received is the same as when on disability.