Permanent disability

Discussion in 'Off-Topic Discussions' started by Abner, Apr 1, 2015.

Loading...
  1. Abner

    Abner Well-Known Member

    I have a friend who needs to go on permanent disability. Would he pay taxes on this?
     
  2. me again

    me again Well-Known Member

    Nope, it's completely tax free, but it's different from the regular social security funding.
     
  3. Abner

    Abner Well-Known Member

    Thanks for the information me again.
     
  4. Kizmet

    Kizmet Moderator

    Depending on the nature of your friend's disability, obtaining SSDI can be difficult, time consuming and frustrating. I've been told that 85% of the applicants are denied on their first try. However, I've also been told that 85% of those originally denied are approved on appeal. Persistence pays off in this matter.

    Benefits for People with Disabilities
     
  5. Jonathan Whatley

    Jonathan Whatley Well-Known Member

    Tax treatment of disability benefits will depend on their source, and might depend on other details of your friend's finances.

    • SSDI: From nolo.com: "Social Security disability benefits (SSDI) can be subject to tax, but most people do not end up paying taxes on them because they don't have much other income. About a third of Social Security disability recipients, however, do pay some taxes, because of their spouse's income or other household income."

    • SSI: From irs.gov: "upplemental security income (SSI) payments […] are not taxable"

    • Private disability benefits: From hcvadvocate.org: "For private disability benefits, the IRS looks to tax either the premiums paid for the disability insurance or the benefits paid to the claimant, but not both."
     
  6. Abner

    Abner Well-Known Member

    Thanks everyone! I am trying to help out the best that I can.

    Abner



     
  7. me again

    me again Well-Known Member

    A 52 year old acquaintance is:
    - morbidly obese (over 450 pounds, but less than 500 pounds)
    - has lower back problems
    - and also has a foot problem

    He receives 100% disability - tax free.
     
  8. Abner

    Abner Well-Known Member

    God bless that guy. It must be really hard to get along, let alone work. Do you happen to know how much he gets a month?
     
  9. me again

    me again Well-Known Member

  10. Ted Heiks

    Ted Heiks Moderator and Distinguished Senior Member

  11. Ted Heiks

    Ted Heiks Moderator and Distinguished Senior Member

    me again is rioght, there are no federal taxes on disability, but ask your friend if he/she has to pay state or local income taxes, he might owe taxes on state or local (i owe local taxes on my ssd).
     
  12. Ted Heiks

    Ted Heiks Moderator and Distinguished Senior Member

    uh, huh! IT TOOK MY DAD 2 YRS TO GET SSD ON MY BEHALF ... but then you usually get that 2 yrs worth of benefits for your first check from ssa
     
  13. Ted Heiks

    Ted Heiks Moderator and Distinguished Senior Member

    you're a good man, abner!
     
  14. Ted Heiks

    Ted Heiks Moderator and Distinguished Senior Member

    Oh, by the way, people! even though i am a double mba, i am no tax professional, so contact your friendly neighboirhood tax professional
     
  15. Abner

    Abner Well-Known Member

    You are a better man than me, that's for sure. :)
     
  16. RacerBoy

    RacerBoy New Member

    Where you from? For this disabilities he doesn't pay taxes.
     
  17. Abner

    Abner Well-Known Member

    CAlifornia

    California
     
  18. Kizmet

    Kizmet Moderator

    you
    no, you

    [video]https://www.youtube.com/watch?v=ravi4YtUTxo[/video]
     
  19. Abner

    Abner Well-Known Member

    Love it

    That is an awesome youtube video! :)
     
  20. Ted Heiks

    Ted Heiks Moderator and Distinguished Senior Member

    :shock:
    Aw, shuckins! Abner, I've watched you evolve from newbie to very valuable senior member. So you're a good man too.
     

Share This Page