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Thread: Tax question! Does disability count as making money in a different state?

  1. #1
    Senior Member mr_coffee's Avatar
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    Question Tax question! Does disability count as making money in a different state?

    Hi guys and gals,

    I'm doing my taxes and I need to file 2 different states, PA and CA. When I was getting disability I lived in PA but now that i'm in CA I don't make any SSI or SS when before I was getting both.

    I filed my 1099 SSA which shows how much disability I made in 2008-2009 which was only like $3,500. So I put that down in the tax form. But then it asked me if I worked in 2 different states. Should I say yes I worked in PA or should I say no because I was just getting disability in PA?

    Or does disability count as working?


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    Senior Member rdf's Avatar
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    No you didn't work in PA.

    eta: SSDI can be counted as income if you add up all your income from all sources, plus half of your SSDI for the year, and the resulting amount is above 25K or so.

    I don't know if SSI can be counted as income, or not. Might call the IRS.
    Last edited by rdf; 03-31-2010 at 07:21 PM.
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    Senior Member medic1's Avatar
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    Quote Originally Posted by rdf View Post
    No you didn't work in PA.

    eta: SSDI can be counted as income if you add up all your income from all sources (including SSDI), divide by two, and the resulting amount is above 25K or so.

    I don't know if SSI can be counted as income, or not. Might call the IRS.
    wouldnt SSi be considered unearned income?

  4. #4
    Senior Member mr_coffee's Avatar
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    Well I got 2 checks in the mail, I was from SS and the other said SSI, but never SSDI.
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  5. #5

    Taxes

    Social Security, Social Security Disability and Supplemental Security Income are non-taxable incomes. Meaning you do not pay taxes on those sources.

    You got Social Security Disability check in Pennsylvania.

    You worked, pay check with taxes, in California. So you worked only in 1 state.


    Ti

  6. #6
    They probably would have sent you a form with the total amount received throughout the year and directions on where to claim it if you had to. I'm not sure how it works in the states though.
    ~Ashley~

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    Senior Member rdf's Avatar
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    Quote Originally Posted by titanium4motion View Post
    Social Security, Social Security Disability and Supplemental Security Income are non-taxable incomes. Meaning you do not pay taxes on those sources.

    You got Social Security Disability check in Pennsylvania.

    You worked, pay check with taxes, in California. So you worked only in 1 state.


    Ti
    Social Security Disability income can be taxed as I explained above - I think up to 85% of SSDI is taxable under the right circumstances.
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  8. #8
    Quote Originally Posted by mr_coffee View Post
    Or does disability count as working?

    Thanks!
    My dad works for the IRS, so I will tell you what I know: Disability payments do NOT count as working. You're receiving the payments largely because you don't work and they only serve to help you while you do work. It is tax money, so taxing you on tax money would make no sense.

    However, it's good you no longer collect from PA while living in CA, as you must inform the government whenever you move when collecting from it. That was my only concern when going to read this because I wanted to make sure you notified the government of your move if you still collect to avoid any possible troubles for you.


  9. #9
    Senior Member rdf's Avatar
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    85% of SSDI benefits can be taxed if you make over a certain amount of money.
    Quote Originally Posted by Le Type Fran├žais View Post
    My dad works for the IRS, so I will tell you what I know: Disability payments do NOT count as working. You're receiving the payments largely because you don't work and they only serve to help you while you do work. It is tax money, so taxing you on tax money would make no sense.

    However, it's good you no longer collect from PA while living in CA, as you must inform the government whenever you move when collecting from it. That was my only concern when going to read this because I wanted to make sure you notified the government of your move if you still collect to avoid any possible troubles for you.
    It is tax money, so taxing you on tax money would make no sense.
    Tell that to the unemployed whose benefits are taxed.

    Social Security Benefits
    Because total income is limited for persons collecting Supplemental Security Income (SSI), it is the rare exception that a person collecting any portion of SSI benefits would owe income taxes.

    Persons receiving SSI benefits as their only source of income would not be taxed on that benefit.

    However, some people who get Social Security Disability (SSD), or Social Security retirement, may have to pay income taxes on those benefits based on what other income they may be receiving. This will apply to you only if you have other substantial income in addition to your benefits (for example, wages, self-employment, interest, dividends, pension, taxable disability insurance benefits, and other taxable income that you have to report on your tax return).

    Rather than provide a separate, lower tax table for Social Security benefits, the IRS provides a break by taxing only a portion of the Social Security benefits depending on the amount of other income. No one ever pays income taxes on more than 85 percent of his or her Social Security benefits and some pay on a smaller amount, based on these IRS rules:

    • If you file a federal tax return as an "individual" and your combined income* is between $25,000 and $34,000, you may have to pay income tax on 50 percent of your Social Security benefits.
    • If your combined income is above $34,000, up to 85 percent of your Social Security benefits is subject to income tax.
    • If you file a joint return:
      • You may have to pay taxes on 50 percent of your benefits if you and your spouse have a combined income* that is between $32,000 and $44,000.
      • If your combined income is more than $44,000, up to 85 percent of your Social Security benefits is subject to income tax.
      • If you are married and file a separate tax return, you probably will pay taxes on your benefits.


    *Combined income is the total of your taxable pensions, wages, interest, dividends, and other taxable income, plus any tax-exempt interest income, plus half of your Social Security benefits. If that total is more than a base amount, some of your benefits will be taxable. The base amount is:

    • $0 for married persons filing separately who lived with their spouses at any time during the year;
    • $25,000 for singles, heads of households, and marrieds filing separately who didn't live with their spouses; and,
    • $32,000 for those who are married filing jointly.
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  10. #10
    Senior Member skippy13's Avatar
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    I recommend that you see tax professional for this year. Next year wil be different because you will probably just be getting income from only one source and then can return to doing them yourself. It is too easy to mess up this kind of thing and you don't want to have the IRS getting on you and maybe triggering an audit. If you have moving expenses and all it makes for a complicated tax return. "Don't try this at home", or get a good quality computer tax program from a commercial source.
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