Taxes and Your Disability Benefits Part II: Supplemental Security Income

Mar 11, 2015 | WC & Other Laws

Supplemental Security Benefits (SSI) are often a point of confusion for individuals filing taxes. This point of confusion, fought against by disability attorneys, is often conflated by the Social Security Administration. The SSA encourages those receiving SSI to report it.

In spite of what people think, Supplemental Security Benefits are completely non-taxable and, as such, do not need to be reported during tax season on a tax return. Some Social Security Benefits are taxable and do need to be reported but Supplemental Security Benefits do not generally fall into that category. The IRS, in Publication 907, which expressly addresses questions pertinent to people with disabilities, says specifically that social security benefits do not include Supplemental Security Benefits, which are not taxable. Individuals receiving SSI as part of their disability supplement should not include these payments on a tax return. Denver disability attorneys work for the maximum benefit award possible. It is encouraging to know that some of their hard work goes undisturbed by the tax system.

Related: Taxes and Your Disability Benefits Part I: Workers’ Compensation

Workers’ Compensation can be difficult, confusing, and very complex. Kaplan Morrell has helped thousands of injured workers since 1997 get the benefits they deserve. Contact us here or call us at 303-780-7329 for your free consultation.