Fresno SSD and Income Tax Attorneys
Social Security disability (SSD) benefits are provided to those disabled workers who qualify. For workers who receive benefit payments, that income may be exempt from taxation, if a person has no other income or if that other income is low enough. It is important, however, to know how your benefits may be taxed, if you do have other income, and what that means for your claim.
At Milam Law, we are able to help you with certain tax questions you may have, but our practice is primarily for Social Security disability. We do NOT accept tax cases. If Social Security does not fully advise you about any complex tax questions, we can try to refer you to tax attorneys who specialize in this area of law.
One area where we have had to assist our clients is where a disability applicant is self-employed, typically in some family business, and Social Security is arguing that you have not really retired — even though another family member has taken over the business. This is very complex with some specific rules, which we have successfully argued where our clients have this problem arise.
Another specific area that has some tax implications is where a person is not "insured" for Social Security because the number of "credits" earned is close, but not enough, to qualify for SSD or SSR. This often happens where there is a family business, and one spouse takes all the income and pays into Social Security, while the second spouse takes nothing, even though the other spouse worked as well. There are rules that can allow the tax forms to be redone, and Social Security taxes to be paid, if too much time has not passed. Milam Law has worked with accountants often to remedy this type of situation and qualify people for SSD. Often, it was an oversight or lack of understanding when the tax forms were prepared.
Another type of tax issue that arises on occasion is where there is a Supplemental Security Income (SSI) claim that is won and there needs to be a "special needs trust" to protect recipients (often children) from not being able to get their benefits. For these situations, we have typically referred clients out for the preparation of these trusts by a trust attorney who specializes in these types of cases. We alert our clients whenever these types of cases come along.
These and other tax-related situations arise from time to time with our disability clients, and we have done what is needed to assist these clients.
Information on this website is provided as a service of Milam Law. Contact us regarding Social Security disability claims and denials.
Sacramento Social Security Taxes Lawyers
The Internal Revenue Service does not require a person to file a tax return if Social Security disability income was the only source of income for that tax year. If a person does have additional income to the disability benefits, the income is only taxable if the adjusted gross income is higher than the base for a filing status.
In order to quickly find out if your disability benefits are taxable, find out the total of the benefits you earned for the tax year and divide by two. Add that figure to your other gross income. If that figure is less than the base amount for your filing status, you will most likely not have to pay taxes on your benefits.
Contact Our Attorneys to Learn More Information
If you are disabled, contact us at Milam Law, and learn more information about taxes and disability benefits. Send our firm an e-mail or call one of our Northern California offices toll free at 877-840-3508 to schedule a free, initial consultation.
