I received a question from a visitor to our main website — JKHarris.com — and wanted to share it with you along with some additional information.
Here’s the question: “My husband became totally disabled in January of 2006. He received his Social Security Disability Income check in mid-December of 2006. Is his $8,000 on his SSA-1099 taxable?”
We appreciate the question, but because we would need more information, we can’t fully answer it. But, we can give a little guidance on what we do know. In the end, I would recommend that the you call on a professional to seek additional help or call the IRS.
Back to the answer: If you filed separately and are married, then up to half of that $8,000 is taxable. If you are married and filing jointly and are only receiving Social Security benefits, then it is not taxable.
Now there are many caveats with these answers. We would need to know specifically your situation in order to help you. We do find that we are able to assist people who have problems similar to yours
In addition, just because you receive Social Security benefits doesn’t mean the IRS won’t come after them if you owe them back taxes. As a matter of fact, they can claim up to 15 percent of your Social Security benefits under certain circumstances to pay them off. On the other hand, those who meet special criteria can protect their Social Security benefits.
So, the moral of this story is to make sure you conduct due diligence to protect as much of your income as possible. Thanks for the question!