
We are definitely not tax attorneys. But as the year wraps up it’s a good time for Social Security Disability (SSD) beneficiaries to review their finances to avoid any surprises in 2025. Even though SSD benefits typically aren’t taxed for people with limited income, adding even a small amount of extra income at the end of the year could affect your benefits or taxes. Be mindful of any income from part-time work or freelance projects—if you’re close to the monthly earnings limit, it might be wise to delay additional income until January.
If you have a retirement account, like an IRA or 401(k), plan any withdrawals carefully. Large withdrawals could push your taxable income into a range where a portion of your SSD benefits becomes taxable. Likewise, for those who’ve faced higher medical expenses this year, keep track of these costs; you may qualify for deductions that reduce your taxable income.
Finally, don’t overlook the benefits of an ABLE account. This type of account allows you to save up to $17,000 per year for disability-related expenses without affecting SSD or SSI benefits. If you’re looking for extra savings opportunities that won’t jeopardize your eligibility, an ABLE account might be a great option to consider before year-end. A little planning now can go a long way in protecting your benefits while setting you up for a financially healthy new year.
If you’re close to the monthly earnings limit, it might be wise to delay additional income until January.
Got any questions? Schedule a consultation with us. I’m here to help. It’s a lot to take in, but we’ll get through it together. After all, navigating these waters is always easier when you’ve got someone to chat with.
Comments