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John, Attorney
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Hello, I am on SSDI and received $200 from a production

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I am on SSDI and received $200 from a production company to film in our backyard. Do I need to pay federal or state taxes on this amount? Thanks for the information.


Most likely you'll not exceed the income threshold for being required to pay taxes. For the majority of people, Social Security Disability benefits are not taxable. This is true for people who have income in addition to disability benefits as well as those who do not.

If you or your spouse have another source of substantial income, it's likely your benefits could be taxed by the federal government. Here's how it works. If you file your taxes as an individual, and your income is more than $25,000 per year but less than $34,000, you would have to pay taxes on about half the value of your benefits. If you are married and you file jointly, you can have a combined income of up to $32,000 before having to pay taxes on half your benefits.


If you are single and you make more than $34,000 (or married and make more than $44,000), 85% of your benefits could be taxed.


If your disability benefits are subject to taxation because your income is above these limits, your disability benefits would be taxed at your marginal tax rate. In other words, you would not pay taxes of 50% or 85% of your benefits, you would probably pay taxes of about 10-15% on 50%-85% of your benefits. Higher income people might pay taxes of 33-35% on 85% of their benefits.


As to state taxes, Hawaii doesn't tax disability benefits at all.


So, the $200 probably isn't going to make a difference in whether you are taxed or not. If you haven't paid tax in the past, unless this $200 puts you over the $25,000 income threshold, then you'll not have to pay any taxes.




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