After spending most of your life working and paying into Social Security, one day, you may become unable to continue working due to your age or perhaps your declining health. You may consider filing for disability benefits. Applying for disability benefits may feel intimidating and confusing. Many people are left wondering, “Do I need a lawyer for social security disability?” 

Do I Need a Lawyer for Social Security Disability?

While you are not required to hire a lawyer during the Social Security Disability application process, having legal counsel will significantly decrease your chances of being denied benefits. Many people assume that the application process is quick, easy, and only requires filling out a few forms. This is not the case when it comes to applying for disability benefits. The application process can be complex, and it requires extensive paperwork, medical records, and other personal information. Errors or omissions could impact your claim negatively and may result in a denial of benefits. If you were denied benefits, having a disability attorney to help you through the next steps will make the process much easier. 

What Is Required When Applying For Disability? 

When applying for disability, you will need to present information about your medical condition, work history, and other personal information. It is crucial to provide complete and accurate information during the application process. 

A Disability Attorney Can Help You Organize the Required Information

Compiling all of the required information on your own can be difficult and tedious. A disability attorney can assist you in organizing the correct information and ensuring it is comprehensive and satisfactory. 

Medical Information

  • Name, address, and telephone number of all treating physicians 
  • Dates and names of any medical tests you have undergone
  • Names of medications you are taking and the prescribing doctor

Personal Information

  • Your social security number
  • Your date and place of birth
  • Name and birth dates of any children who are minors
  • Your current or former spouse’s social security number and date of birth as well as the place of marriage and date of divorce or death if applicable
  • Your banking information including bank name and routing number or account number

Work Information

  • Names and addresses of employers from the current year and year prior
  • A copy of your Social Security Statement
  • The amount of money earned in the current year and previous year
  • A list of up to five jobs you have had in the last 15 years with dates of employment
  • Information regarding any workers’ compensation benefits you field or intended to file for
  • The start and end dates of any active-duty U.S. military service prior to 1968

What Happens If I Am Denied Benefits?

Finding out that you have been denied your benefits can feel frightening, but a majority of clients are denied on the application. There are many reasons why your disability claim may have been denied and it can be remedied. You may have filed the incorrect claim type, failed to show adequate medical proof, you may earn too much money, or it could be something else. If you were denied, your claim could be reevaluated during the appeals process. It is not recommended to attempt an appeal without the assistance of a knowledgeable disability attorney. Disability attorneys have experience with the Social Security claims process as well as insights into the specific requirements to get approval. 

The Law Offices of Karen Kraus Bill Can Help

Whether you are applying for the first time or need to appeal a denial, the disability attorneys at the Law Offices of Karen Kraus Bill are ready to assist you. Applying for SSDI or SSI on your own might seem straightforward at first, but you will quickly discover a lot goes into the process. Mistakes or missing information on the application can result in a denial or reduced payments. The attorneys and staff at the Law Offices of Karen Kraus Bill have filed hundreds of applications. Contact us today for a free consultation.

Many people qualifying for disability have one big question about the income they are going to be receiving. Is SSDI taxable? The question is not so simple to answer as it can vary based on your specific situation and location. Here is a breakdown of how taxable your SSDI may be.

Before receiving SSDI benefits, there are two major factors that must be in play to qualify for benefits. The first is the definition by which the government deems someone qualified to receive benefits:

First, the SSA says, “Your condition must significantly limit your ability to do basic work such as lifting, standing, walking, sitting, and remembering—for at least 12 months.” The condition must prevent you from doing the kind of work you did previously, and based on your age, education, experience, and transferable skills, you are unable to perform other work.

Additionally, you must have a pre-qualifying disability from the SSA’s Approved List and make less than $1310 in monthly wages.

SSDI has supported Americans since Social Security came into existence during the New Deal acts of the 1930s.

When do you pay Federal Tax for SSDI?

Generally, SSDI income is not taxable unless your federal taxable income is above a certain threshold. Currently, as of December 2020, the threshold for a single income amount that is not taxable is $25,000 and $32,000 when married and filing jointly.

State Tax Possibilities for SSDI

The above rules stand for federal taxation of SSDI, but what about State taxes? Historically, states have not taxed Social Security Income, including disability income. However, in recent years, some states have began implementing state-specific policies on how social security income is taxed. The following 13 states have their own policies in place:

  • Colorado
  • Connecticut
  • Kansas
  • Minnesota
  • Missouri
  • Montana
  • Nebraska
  • New Mexico
  • North Dakota
  • Rhode Island
  • Utah
  • Vermont
  • West Virginia

The state regulations on social security income often mirror the Federal regulations and simply add a state-specific layer to the way your income is taxed, but in some states, the regulations and ruling can differ slightly.

How Are SSDI Taxes Calculated?

Your reported income for taxes does not necessarily include the entirety of your disability income. The way this is calculated is based on your other sources of income and a portion of your social security income. If your calculated total is below the threshold set in your state or federally, you will not receive any taxes on your disability income. Additionally, this means that if your disability benefits are increased for any reason, you would potentially get taxed on a portion of that increase.

All of this can be confusing to navigate. This is one of the many reasons people often seek council with an experienced attorney to help them make sure they take the best route possible for their specific needs.

Need Help Navigating SSDI and Taxes?

Many of the questions people have about the income they receive can blur the lines of legal support and accounting support. Let our experienced social security disability lawyers help! Our attorneys have specialized in Social Security Disability Income and SSI legal services for over 30 years and we are prepared to help you through the process! Schedule a free consultation with one of the experienced attorneys at the Law Offices of Karen Kraus Bill.