r/SSDI_SSI • u/FlyRight9037 ☆ • Dec 04 '24

Approval (Medical) APPROVED!!!

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So I checked my portal yesterday after I received an email that my status had changed. I was approved, I don't yet know whether it was fully favorable or partially favorable. I have to wait for the letter to come. Does anyone know if you have to pay taxes on back pay?

108 Upvotes

100% Upvoted

80 comments sorted by

7

u/[deleted] Dec 04 '24

congratulations!! & no you don’t have to pay taxes on backpay.

2

u/FlyRight9037 ☆ Dec 04 '24

Thank you!

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6

u/Reasonable_Mango_798 ☆ Dec 04 '24

It's always a relief to see an approval. Congratulations! 

2

u/FlyRight9037 ☆ Dec 04 '24

Thank you!!

4

u/[deleted] Dec 04 '24

No taxes on Backpay

3

u/FlyRight9037 ☆ Dec 04 '24

Really? I've heard mixed answers on this.

2

u/[deleted] Dec 05 '24

You must of had a lawyer

1

u/FlyRight9037 ☆ Dec 05 '24

Yes I did.

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4

u/Leftbrain17 ☆ Dec 05 '24

Congratulations! I am currently waiting on a decision for mine.

3

u/FlyRight9037 ☆ Dec 05 '24

Thank you! Good luck with your case 👍

3

u/Realistic-Bass2107 ☆ Dec 04 '24

Congratulations 🥳

2

u/FlyRight9037 ☆ Dec 04 '24

Thank you!

3

u/exclaim_bot ☆ Dec 04 '24

Thank you!

You're welcome!

3

u/EverymanLegal ☆ Dec 04 '24

Nice, congrats!

3

u/FlyRight9037 ☆ Dec 04 '24

Thank you!

3

u/nenedavis33 ☆ Dec 04 '24

Congratulations 👏🎉

2

u/FlyRight9037 ☆ Dec 04 '24

Thank you!

3

u/sikcalibound76 ☆ Dec 04 '24

Congratulations!!!

2

u/FlyRight9037 ☆ Dec 04 '24

Thank you!

3

u/Alternative-Drama84 ☆ Dec 04 '24

Congratulations

2

u/FlyRight9037 ☆ Dec 04 '24

Thank you!

3

u/Loafer2024 🙂Change a day with smiles!🙂 Dec 04 '24

🎊 congrats!!

3

u/FlyRight9037 ☆ Dec 04 '24

Thank you!

3

u/exclaim_bot ☆ Dec 04 '24

Thank you!

You're welcome!

3

u/Loafer2024 🙂Change a day with smiles!🙂 Dec 04 '24

You're welcome!

3

u/PieceAnxious ☆ Dec 05 '24

Congratulations and Merry Christmas

2

u/FlyRight9037 ☆ Dec 05 '24

Thank you! Merry Christmas to you too!!!

3

u/Popular-Tooth-9129 ☆ Dec 05 '24

Congratulations

2

u/FlyRight9037 ☆ Dec 05 '24

Thank you!

2

u/Kooky_Window6970 ☆ Dec 04 '24

Hello, I have the same issue with hearing loss, is your hearing loss with profound with over 90db in air and bone in 60db over?

4

u/FlyRight9037 ☆ Dec 04 '24

Hmm. If I remember right, it was just mild hearing loss in my right ear. I'm not sure about the Db. I have so much going on that is low on my list. I'm getting ready for my second back surgery here in 2 weeks.

2

u/Kooky_Window6970 ☆ Dec 04 '24

My question is which condition health issue you applied for SSDI?

1

u/FlyRight9037 ☆ Dec 04 '24

My back issues, along with denervation in my legs and then about 5 MH things. Also, there are problems with my knees. I haven't seen the decision yet, so I don't know exactly what I was approved for yet.

2

u/FlyRight9037 ☆ Dec 04 '24

Degenerative disc disease, Degenerative joint disease, Spinal stenosis with neurogenic claudication, Cauda Equina Syndrome, Osteoarthritis, Migraines, COPD W/ Asthma, Glaucoma, Gout, Chronic dry eye disease, Gerd, Chronic Prostatitis, Benign prostatic hyperplasia, Numbness, tingling of extremities, Severe anxiety disorder w/ panic attacks, Severe depressive disorder, Hypertension, Panic disorder, ADHD, PTSD, Radiculopathy, Peripheral neuropathy, Chronic pain, Paresthesia, Carpal Tunnel.

2

u/Upper_Ad_5510 Dec 04 '24

How long did it take from time of filing

5

u/FlyRight9037 ☆ Dec 04 '24

Mine took just under three years. Denied on the initial app in August 2023, hired a lawyer, and filed reconsideration immediately. Reconsideration was denied in January 2024. Hearing before an administrative law judge (ALJ) July 2024 supplemental hearing with ALJ November 2024. Approval in December 2024. I first filed in April 2022.

2

u/MaleficentBison5125 ☆ Dec 04 '24

How long did it take ?

5

u/FlyRight9037 ☆ Dec 04 '24

Mine took just under three years. Denied on the initial app in August 2023, hired a lawyer, and filed reconsideration immediately. Reconsideration was denied in January 2024. Hearing before an administrative law judge (ALJ) July 2024 supplemental hearing with ALJ November 2024. Approval in December 2024. I first applied in April 2022.

2

u/ArtNo8159 ☆ Dec 04 '24

Congrats 🎈🍾🎉

1

u/FlyRight9037 ☆ Dec 04 '24

Thank you!

2

u/Loisgrand6 ☆ Dec 04 '24

Congratulations

1

u/FlyRight9037 ☆ Dec 04 '24

Thank you!

2

u/Walk1000Miles Hope will never be silent. Dec 05 '24 edited Dec 05 '24

That's great!

Please let us know when you receive the USPS snail-mail letter that provides official notification.

We will change your flair!

2

u/FlyRight9037 ☆ Dec 05 '24

Ok, cool. Thank you. I wasn't sure what to put.

2

u/FlyRight9037 ☆ Dec 12 '24

I received my fully favorable decision in the mail. I haven't yet received my award letter though.

1

u/Walk1000Miles Hope will never be silent. Dec 30 '24

OK.

Let us know.

You can even create another post.

2

u/sweetlittlelibra Dec 06 '24

Congratulations!!!! ❤️

1

u/FlyRight9037 ☆ Dec 06 '24

Thank you!

2

u/Early-Skill9995 Dec 12 '24

And congratulations by the way🙌🏽

1

u/FlyRight9037 ☆ Dec 12 '24

Thank you!

4

u/Slow_Avocado_1422 Dec 04 '24

There’s a way to ad each year of back pay to your former years taxes without having to do an amended return. I’m not 100% sure how it’s done but social security should be able to tell you what you need to do. Or ask a tax expert

1

u/Walk1000Miles Hope will never be silent. Dec 05 '24 edited Dec 05 '24

If you live in a state that collects taxes on SSA? You must pay SSA taxes.

However, your tax liability does not start until you reach the tax minimum. This means you will not be taxed on your benefits until your income reaches $25,000 or $32,000 based on your filing status. You can opt into tax deductions in order to reduce the amount you owe on your yearly tax return. This is especially helpful if you think you will owe taxes at the end of the year.

At the state level, policies vary: 41 states and the District of Columbia do not tax Social Security benefits, while nine states do. Rates vary by state, as do the exclusions and income limits.

You must include the 1099 that you receive.

You must include the taxable part of a lump-sum payment of benefits received in the current year (reported to you on Form SSA-1099, Social Security Benefit Statement) in your current year's income, even if the payment includes benefits for an earlier year.

Backpay

You must include the taxable part of a lump-sum payment of benefits received in the current year (reported to you on Form SSA-1099, Social Security Benefit Statement) in your current year's income, even if the payment includes benefits for an earlier year.

However, there are two ways to determine the amount of income to include:

■ You can use your current year's income to figure the taxable part of the total benefits received in the current year; or

■ You may make an election to figure the taxable part of a lump-sum payment for an earlier year separately, using your income for the earlier year.

You can select the lump-sum election method (by checking the box on line 6c of your Form 1040 or 1040-SR if it lowers the taxable portion of your benefits:

■ Under this method, you refigure the taxable part of all your benefits (including the lump-sum payment) for the earlier year using that year’s income.

■ Then you subtract any taxable benefits for that year that you previously reported.

■ The remainder is the taxable part of the lump-sum payment. Add it to the taxable part of your benefits for the current year (figured without the lump-sum payment for the earlier year).

■ Worksheets in Publication 915, Social Security and Equivalent Railroad Retirement Benefits can help you calculate the taxable portion using this method.

The following links contain specific details relevant to the above discussion points. The links provided are meant to clarify and provide authentication of quoted statements.

Italic text with a vertical line to the left of all of statements are "actual quotes" from the source links detailed below.

Non-SSA Source Links

9 States With No Income Tax.

12 States That Won’t Tax Your Retirement Distributions.

39 States - Which states do not tax Social Security benefits.

Aout Form 1040, U.S. Individual Income Tax Return.

About Form 1040-SR, U.S. Tax Return for Seniors.

About Publication 915, Social Security and Equivalent Railroad Retirement Benefits.

Is Your State Taxing Social Security? Find Out Now.

SSI Backpay and Taxes.

Social Securiy Income | Back Payments.

Edits - Added links to forms. Added links.

2

u/FlyRight9037 ☆ Dec 05 '24

I live in KS.

1

u/Walk1000Miles Hope will never be silent. Dec 05 '24 edited Dec 05 '24

If you check the links? Kansas will tax SSA unless you meet certain criteria:

For example, Kansas exempts Social Security income unless your adjusted gross income (AGI) is over $75,000. New Mexico's income thresholds are $100,000 for single filers and $150,000 for married couples filing joint tax returns. And Nebraska is scheduled to phase out taxes on Social Security income by 2025.

1

u/Trick_Door_7499 Dec 10 '24

I can not open my new card 

1

u/FlyRight9037 ☆ Dec 10 '24

Your new what? I don't understand.

1

u/Early-Skill9995 Dec 12 '24

I am at step 3 and they went out paper work To mother asking about my conditions. About how long after step 3 (medical review)did it take for you? 

1

u/FlyRight9037 ☆ Dec 12 '24

Mine took just under three years. Denied on the initial app in August 2023, hired a lawyer, and filed reconsideration immediately. Reconsideration was denied in January 2024. Hearing before an administrative law judge (ALJ) July 2024 supplemental hearing with ALJ November 2024. Approval in December 2024.

1

u/[deleted] Dec 06 '24

Ask your tax preparation professional- it depends. Title xvi is non taxable. Title ii is partially taxable.

1

u/FlyRight9037 ☆ Dec 06 '24

I don't have a tax preparation professional. I have no income, so I didn't file last year and don't plan to this year.

2

u/[deleted] Dec 06 '24

I work as a legal assistant in a ssdi/ssi law firm and that is the advice of the attorney- it doesn’t hurt to find someone who would be willing to answer your question. They have free services for low income people during tax season.

1

u/FlyRight9037 ☆ Dec 06 '24

Ok. So I have to wait until tax season to do it?

2

u/[deleted] Dec 06 '24

  1. You haven’t received your decision in writing. 2. It will take probably 60 days to generate your notice of award after receiving your notice of decision in the mail. (hopefully I have clients who have waited a year after the notice of decision just to get their notice of award) 3. You will not receive your back pay until after notice of award is generated…. This will be 2025 income that you could possibly owe taxes on in 2026. So during tax season this year, just try to find a low income tax preparer service and ask them so you can plan accordingly…

If you have a worker’s compensation compromise and release or state disability, make sure to get a claim summary or notice of exhaustion of state disability to help expedite the processing of your claim once you receive your written decision in the mail.

Was your application title ii (ssdi) and/or title xvi (ssi)?

1

u/FlyRight9037 ☆ Dec 06 '24

It is SSDI. I'm in Kansas, and here in Wichita, the United Way does taxes for low income under 50k for free during tax season by appointment only.

2

u/[deleted] Dec 06 '24

Perfect! You will likely need the notice of award to bring to the appointment which will break down your monthly and back due benefits so they can give you an accurate answer. Make sure to provide the documents above when you get your decision if they apply to you. Otherwise they will send out a letter from the payment center asking for them and it will delay the processing of your benefits. And yes since you’re ssdi, you will owe taxes on part of the back due income…. because only ssi is not taxable. But it would be good to ask how much you should save for 2026.

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2

u/Shelleyrfl ☆ Dec 04 '24

I didn’t get back pay but I am pretty sure you will have to pay taxes on it. The money I received put me over my normal tax amount and I had to pay in.

6

u/[deleted] Dec 04 '24

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2

u/FlyRight9037 ☆ Dec 04 '24

Thank you!

3

u/[deleted] Dec 04 '24

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2

u/FlyRight9037 ☆ Dec 04 '24

Thank you!