Many disabled Americans who receive Social Security Disability (SSD) benefits have a hard time stretching their assistance far enough to make ends meet. One of the reasons behind this problem is that the federal government taxes SSD benefits, which takes away crucial dollars from people who need help the most.
An article from Forbes magazine explains the regulations overseeing the taxation of Social Security Disability benefits can be so complicated that even tax professionals have a hard time understanding the rules. To help people with disabilities better understand Social Security Disability tax laws, we will take a look at how much your benefits can be taxed and what you can do to ensure you have enough benefits to cover your everyday expenses.
Federal law states that as much as 85 percent of income from Social Security Disability benefits can be taxed. Furthermore, certain penalties can apply that significantly increase the amount disabled individuals owe to the Internal Revenue Service.
So what should you do to help reduce the amount you are taxed on your SSD benefits? The article suggests discussing your financial situation with a certified professional accountant. It may also prove beneficial to have a Social Security Disability attorney by your side when applying for benefits to help ensure you get the maximum amount of benefits you’re owed.
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The financial burden that often comes with a serious injury can be too much for many people to bear. Unexpected medical debt, damaged personal property, and the sudden loss of income can impact the budgets of most families. The good news is that a successful injury claim could help reduce that financial strain after a serious accident. Get in touch with a Terre Haute personal injury lawyer with Fleschner, Stark, Tanoos & Newlin to learn more.
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