Yes, you can file a tax refund if you receive disability benefits

Whether you owe taxes depends on what kind of disability income you receive and whether you have other income. Social Security Disability Insurance (SSDI) is usually not taxable on its own, but if you have other income — from work, a pension, interest, or investments — you may owe taxes. Supplemental Security Income (SSI) is never taxable. The key is whether your total income crosses the threshold that requires you to file.

If you do owe taxes and had money withheld from paychecks or made estimated payments, you can file a tax return to get that money back. You file the same way anyone else does: through the IRS directly, with a tax professional, or using free tax software if your income is below a certain level.

Key Takeaways

  • SSDI income alone is not taxable, but other income you receive may be, and you need to count all sources together to know if you must file.
  • SSI is never taxable under any circumstance, so SSI alone does not require you to file a return.
  • If you have SSDI plus other income (wages, self-employment, pensions, interest), you may owe taxes and can file to recover any overpayment.
  • The IRS Free File program lets you file at no cost if your income is below a set limit, which changes each year.
  • You will need your Social Security number, proof of any income you received, and records of any taxes withheld or paid.

When SSDI counts as income for tax purposes

SSDI by itself does not trigger a tax filing requirement. However, the IRS counts SSDI as income when you also have other earnings. If your SSDI plus other income exceeds the threshold, you must file — even if no tax is owed, because filing is what gets you a refund.

The threshold depends on your filing status and whether you are married. For a single person in 2024, the threshold is roughly $15,000 in combined income (SSDI plus everything else). For a married couple filing jointly, it is higher. These numbers change each year, so check the IRS website or ask a tax preparer for the current year's threshold.

If you are unsure whether you crossed the threshold, file anyway. Filing costs nothing if you use a free service, and the worst outcome is that you owe no tax — but you might discover you are owed a refund.

SSI does not count as taxable income

Supplemental Security Income (SSI) is a needs-based program, and the IRS treats it differently from SSDI. SSI payments are never taxable, no matter how much other income you have. If SSI is your only income source, you do not need to file a tax return.

However, if you receive both SSI and other income — such as wages from part-time work or a pension — you count only the non-SSI income when deciding whether to file. SSI stays off the calculation entirely.

How to gather what you need to file

Before you file, collect documents showing all income you received during the year. For SSDI, you will receive a Form SSA-1099-SM in January, which shows how much SSDI you got. For other income, you will receive forms like a W-2 (if you worked for an employer) or a 1099 (if you had self-employment income, interest, or other sources).

You will also need records of any taxes withheld. If you worked, your W-2 shows federal income tax taken from your paychecks. If you made estimated tax payments yourself, gather those payment confirmations. If you had no withholding and no payments, that is fine — you still file to report your income and claim any refund you are owed.

Keep your Social Security number and a valid ID handy. If you file electronically, you will need these to verify your identity.

Filing through IRS Free File or with a tax professional

If your income is below a set limit — which varies by year but is usually around $79,000 — you can use IRS Free File. This is a program where the IRS partners with tax software companies to let you file at no cost. You go to the IRS website, find the Free File link, and choose a provider. You then enter your information into their software, which walks you through each question.

If your income is above the Free File limit, or if you prefer not to use software, you can hire a tax preparer or CPA. Many offer low-cost or sliding-scale fees for people with modest income. Some nonprofits also offer free tax preparation in your area — search "VITA" (Volunteer Income Tax information) plus your city name to find one near you.

You can also file by mail using paper forms, though this takes longer. The IRS website has all the forms and instructions you need, free to read.

What happens after you file

Once you file, the IRS processes your return. If you are owed a refund, they will send it to you by mail or deposit it directly into your bank account if you provided banking information. Direct deposit is faster — usually two to three weeks instead of four to six weeks by mail.

If the IRS has questions about your return, they will contact you by mail. They will not call or email first. If you receive a call or email claiming to be from the IRS about your return, it is a scam — hang up or delete it.

Keep a copy of your filed return and all supporting documents for at least three years. The IRS can audit returns from past years, and having your records makes it straightforward to respond if they ask questions.

Frequently Asked Questions

Do I have to file if I only get SSI?

No. SSI is never taxable, so SSI alone does not require you to file. However, if you have SSI plus other income (wages, interest, a pension), you count only the non-SSI income when deciding whether to file.

What if I worked part-time and also got SSDI?

You must file. Your wages plus SSDI together almost certainly exceed the filing threshold. File to report both income sources and recover any taxes withheld from your paychecks. Work incentive programs like Plan to Achieve Self-Support (PASS) may also affect what you owe — mention this to a tax preparer if you used one.

Can I file if I did not receive a Form SSA-1099-SM?

Yes. If you did not get the form by early February, contact Social Security at 1-800-772-1213 and request a copy. You can also file without it and contact Social Security later — the IRS has your SSDI record and will cross-check. Filing without the form does not delay your refund.

What if I owe money instead of getting a refund?

You can set up a payment plan with the IRS if you cannot pay in full. The IRS offers short-term plans (120 days or less) at no cost and long-term plans with a small setup fee. Call 1-800-829-1040 to discuss options, or set up a plan online through the IRS website.

Will filing a tax return affect my SSI or SSDI?

Filing a tax return does not change your SSDI — it is not means-tested. SSI is means-tested, but filing a return reports income you already reported to Social Security when you earned it. If you are concerned, contact your local Social Security office before filing to confirm your situation.