Is social security disability benefits free of federal taxation?

The SSB would ONLY be free of federal income tax when you do NOT have any other worldwide income to be reported on your 1040 income tax return.

If you received Social Security benefits in 2009, you need to know whether or not these benefits are taxable. Here are seven facts the Internal Revenue Service wants you to know about Social Security benefits so you can determine whether or not they are taxable to you. How much -- if any -- of your Social Security benefits are taxable depends on your total income and marital status.

Generally, if Social Security benefits were your only income for 2009, your benefits are not taxable and you probably do not need to file a federal income tax return.

If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status.

Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet.

You can do the following quick computation to determine whether some of your benefits may be taxable:

*.First, add one-half of the total Social Security benefits you received to all your other income, including any tax exempt interest and other exclusions from income.

*.Then, compare this total to the base amount for your filing status, if the total is more than your base amount, then some of your benefits may be taxable. From 50% to 85% of your SSB can become taxable income on your 1040 income tax return and would be added to all of your other gross income and taxed at your marginal tax rate.

For additional information on the taxability of Social Security benefits, Go to the IRS.gov web site and use the search box for IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits.