Are SSDI Benefits Taxable in Massachusetts?
If you currently receive or plan to apply for SSDI benefits in Massachusetts, you may begin to wonder: are SSDI benefits taxable in Massachusetts? Are they taxable federally? If you receive SSDI benefits, it’s important to know how that might affect your taxes.
Social Security Disability Insurance (SSDI) benefits are for workers who’ve paid into the system over time but can no longer work after receiving a medical diagnosis. These benefits can be seen as income but aren’t taxable in Massachusetts. However, in cases where SSDI benefit recipients receive other income over a certain amount, they may have to pay taxes on their benefits. If you have paid your dues throughout your work life, you deserve to claim your SSDI benefits and can, with help from a skilled attorney.
The Law Office of John J. Sheehan is dedicated to helping Massachusetts residents claim their SSDI benefits. Our team can answer any questions you may have and get you the benefits you’re entitled to. For a free case evaluation or to discuss your benefits, call the Massachusetts SSDI benefits lawyers at the Law Office of John J. Sheehan today at (617) 925-6407.
What SSDI Benefits Are Available in Massachusetts
Social Security Disability Insurance benefits are available to certain individuals through a federally operated program. SSDI benefits are funded through the payroll tax you pay throughout your life and may be available to you if medical complications make you unable to work in Massachusetts.
SSDI benefits are for people in Massachusetts and throughout the country that have worked during their lives but now have a diagnosed medical condition that prevents them from providing for themselves and their families. Generally, a work history showing that you have contributed to the SSDI program through payroll taxes over the years qualifies you for SSDI benefits in Massachusetts. If you live in Massachusetts and have worked throughout your life, yet haven’t claimed Social Security benefits, a Boston SSDI benefits lawyer can help you do so. by paying into the system over the years, you deserve access to SSDI benefits when you need them most. The other part of potential eligibility relates to your medical condition.
But what exactly are the benefits you can receive? Massachusetts residents approved for SSDI benefits can expect a payment each month, like a paycheck. How much you receive depends, and for how long, largely depends on your disability how much you’ve paid into the system over the years.
Do You Have to Pay State Taxes in Massachusetts on SSDI Benefits?
Generally, you need to know about two types of taxes: state and federal taxes. Residents often have to report their income to Massachusetts each year. So, when it comes to SSDI benefits, do you have to pay state taxes to Massachusetts?
Individuals receiving SSDI benefits in Massachusetts don’t need to worry about state taxes, at least related to SSDI benefits. Remember, Social Security is a federal program. Over the years, the federal government has taken the payroll taxes out of your paycheck for this program, not the Massachusetts state government.
That doesn’t mean that you won’t have to pay any taxes on SSDI benefits at all. However, any taxes on SSDI benefits won’t go to Massachusetts, but will instead be paid to the federal government.
Are SSDI Benefits Taxable by the Federal Government in Massachusetts?
Now that you know that your SSDI benefits aren’t taxable by Massachusetts, you still may wonder whether the federal government can tax them. If you live in Massachusetts or anywhere in the United States and receive SSDI benefits, there are certain scenarios in which you will have to pay taxes on SSDI benefits.
Generally, your SSDI benefits are free from taxation. You’ve paid your dues, worked your whole life, and may entirely rely on your SSDI benefits for financial support. If that’s the case, you don’t have to worry about your SSDI benefits being taxable if you live in Massachusetts. However, in some cases, which a Cambridge workers compensation lawyer can help you understand, Massachusetts residents’ SSDI benefits are taxable by the federal government.
If you have other sources of income in Massachusetts, you may have to pay federal taxes on your SSDI benefits. However, that depends on how much you receive in additional income. to figure out your potential tax liability, a Massachusetts SSDI benefits lawyer can help. It’s important to know that people in Massachusetts receiving SSDI benefits may also have additional income from sources like an estate or investments.
SSDI benefits are taxable for individuals making over $25,000 a year or couples making over $32,000. that being said, it isn’t always so straightforward. Instead of adding your total SSDI benefits to any other sources of income, the federal government allows Massachusetts recipients to half their total SSDI benefits for the year and add that amount to any additional income from other sources.
Are You Eligible for Non-Taxable SSDI Benefits in Massachusetts?
If you’re unable to work and live in Massachusetts, you may be eligible for Social Security Insurance benefits. Claiming these benefits that you deserve can help you financially as long as you qualify.
Any person meeting the necessary criteria is eligible for non-taxable SSDI benefits in Massachusetts. The two real qualifiers are whether or not you’ve paid into the system and have a diagnosed medical condition preventing you from working for at least one year. If you believe you qualify for SSDI benefits and are interested, our Massachusetts SSDI benefits lawyers can help you apply.
The minimum age to receive SSDI benefits in Massachusetts is generally 18, provided that you’ve paid into the system sufficiently. However, children can get SSDI benefits through their parents in some cases. You can receive SSDI benefits for the short-term or the long-term, depending on your work history and medical condition.
As long as you keep your total income under a certain amount in Massachusetts, your SSDI benefits aren’t taxable. However, there are other limits to be aware of, which is why it is wise to consult with a Malden workers’ compensation lawyer.
Call Our Attorneys About SSDI Benefits in Massachusetts
Massachusetts residents who qualify for SSDI benefits can easily apply with help from an experienced attorney. Call the Somerville workers compensation lawyers at the Law Office of John J. Sheehan at (617) 925-6407 today for a free case evaluation or to discuss your benefits.