It may seem incredible that you will have to pay taxes on your Social Security benefits. After all, the reason you are getting benefits in the first place is because you are too injured to earn a living. So how can you tell if you will have to pay taxes for your benefits—and how much will it affect your monthly payments?
The good news about Social Security disability in New Jersey is that not everyone will have to pay taxes on their benefits. Roughly one-third of all beneficiaries will have a tax liability, and in most cases, these workers earn a substantial income in addition to their monthly Social Security benefits.
You may have to pay taxes on your Social Security disability benefits if you:
- File as an individual on your federal tax return and have a yearly income of more than $25,000.
- File a joint return with your spouse and your combined income is more than $32,000.
- Are married, but file a separate federal tax return from your spouse.
You should be aware that there are many things that will affect the total “take-home” amount of your monthly benefits. For example, the amount of your benefits should increase each year due to a cost of living adjustment. Each January, the Social Security Administration will determine the percentage of increase and apply it automatically to your paychecks. In addition, the SSA will adjust your payment amount if you receive another form of benefit, such as worker’s compensation.
To find out how to get the maximum amount of disability benefits you deserve, call Manfred F. Ricciardelli, Jr. today at (877) 360-0183. Our experienced legal team can tell you if you are eligible for Social Security benefits, additional income, and health care benefits all in your FREE consultation.