i am approved now tell me about taxes
 

so i got my ssdi back pay not letter yet.. my hubby is employed.. do they take taxes out of your back pay or do you get hit hard at end of year , i dont need any more irs issues:( my questions is how much do you think they will tax me , because i already got the money , now i have to claim it on my taxes . aprox 26000. was my back pay. i cant have it withheld cause i already have it :)
thank you

First off congrats on winning. I had all of this ironed out before I got my backpay and monthly benefits. I have 25% taken out. I had it taken out of my backpay monthly payment. This is maybe a bit too much but I do not want to owe at th end of the year. I believe the breakdown is 10 15 or 25% you can have taken out.

i didnt know i was approved i called my bank and there was lots of money in it , i never remembering seeing a place when i first filed for ssdi to say i wanted taxes taken out, so i wonder now how much i will owe at end of year? we already owe 7000.00 for 2008 because we made a mistake or i should say turbo tax did. any ideas? we make over 32000. a year and we file married joint but i have not worked in 2 yrs ? thanks

Wish I could help you there I am not good at taxes. We take out the max 25% just to be safe. Then in February we get a little bit back. Hate to have to owe them. I did find out this benefit that all of you may want to look into. When my wife paid our property taxes last month we were told we now qualify for a break because I am on disability. So you may want to check this out. I would talk to someone from H&R Block or some other preparer about how much to take out. Good Luck!

I just wanted to bold that property tax discount part above - good to know.:)

i didnt not have anything withheld . didnt know i could.. so 25 percent of 26000.00 is aprao6500.00 so thats what i have to pay in on my taxes? at end of year i am so confused . and wondering now if back pay will hurt me now?

You could set aside 25% in a six month CD in a different bank than you usually deal with. This way you lock it up and make it difficult to get at and spend (but not impossible). Then, in January, when your taxes are computed, you would have money to pay income tax IF it was due. It may not be due. Depends upon other income. You need to talk to your tax preparer. If you didn't owe the money on taxes, you would still have it and could continue to save it. Then you get to keep the interest as well.

We had 25% withheld and I received close to what you got in backpay last year. So out of the 6,000 or so that they withheld we got almost all or it back. Reason being we have 3 kids and only had my wife's income for last year. With me receiving benefits plus her job we figured we may go up in a different tax bracket this year and have to pay more to the Government. So each person is different. Does your husband work? do you have any dependent children that you can claim? I would just call someone that can answer these questions for you.

A friend of mine who has been collecting for 3 years says you don't pay taxes on it.

Hello----So if your husband makes over 32K then you HAVE to pay taxes on 85% of your SSDI. But there ae a lot of variables because you may have a lot of deductions...like meddical expenses or kids to deduct. You need to contact a tax preparer to discuss all of this and they cn run the numbers and give you a very close number. If are going to owe there is several things that you can do. One option is to increase your husbands taxes or send in a payment to the IRS. But again you need to contact a tax preparer!!