Is Social Security Disability Taxable Income?
If a person is receiving payments through a Social Security Disability claim, then what they are receiving is the value stored from taxes already collected. The basic concept of social security is that a specific tax is placed into a fund, and that money is held for the worker's future benefit. Since Social Security money has already been taxed, it is not generally taxed upon return.
Evaluating Social Security and Social Security Disability Benefits
Social Security is normally for the elderly, once they are at an age when most people are no longer physically suitable for work. On the other hand, a person may be rendered physically unable to work due to injury or another problem. In this case, it is possible to file to receive social security payments immediately, releasing stored benefit for relief. Social Security Disability benefits are an alternative to receiving disability outright, and it is usually easier to obtain because it is money earned.
Using Cash Means Paying Taxes
A person who receives Social Security Disability benefits is still responsible for the same obligations of using cash, and must pay excise taxes. There may be situations where a disability recipient may be excused from paying excise taxes, and may even be exempted from property taxes and other liabilities, but it is true that wherever money is exchanged, some sort of tax applies. Social Security Disability benefits represent taxes already payed; while a person is receiving it, their account is being drained, and less is available for retirement. There are other options, such as unemployment benefits, that can be paid before Social Security is withdrawn.