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-   -   Do I pay taxes on back pay I just was awarded ssdi and will receive over 40,000.00 (https://www.askmehelpdesk.com/showthread.php?t=702042)

  • Sep 14, 2012, 05:44 PM
    MIKERMK
    Do I pay taxes on back pay I just was awarded ssdi and will receive over 40,000.00
    I just received a favorable decision on my application for ssdi title 11 according to ssa I will receive over 40,000.00
    I am single with no other income will I be exspected to pay taxes on it 0
  • Sep 14, 2012, 07:30 PM
    AtlantaTaxExpert
    On 40,000, your federal tax liability will be about $4,230.
  • Sep 15, 2012, 08:13 PM
    MLSNC
    Also, you need to look at IRS Pub 915 and review the lump-sum election which will let you refigure the taxes based on prior year(s) returns if any part of the settlement related to prior years. It may or may not be beneficial.

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