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Is Social Security Disability Taxable in Arkansas?


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Many individuals in Arkansas and throughout the nation depend on their Social Security Disability Insurance benefits (SSDI). This is especially true for people who have experienced an injury or condition that prevents them from returning to work. One major concern among the population receiving SSDI may be whether they have to pay taxes on their benefits. As you will see throughout this article, many states may impose taxes on social security benefits. However, states such Arkansas may take an alternate route when it comes to taxes and SSDI benefits. Fayetteville AR disability lawyer Ken Kieklak, Attorney at Law, invites you to keep reading as we discuss whether SSDI is taxable in Arkansas.

Is Disability Income Taxable in Arkansas?

Many people may wonder whether their payments from SSDI are taxable. Yes, some states may require SSDI beneficiaries to pay taxes on their monthly benefits. What many people fail to realize is that close to a third of all SSDI recipients have to pay taxes, depending on the total income they generate during a taxable year. For instance, if you and your spouse combined have more than the legal income threshold, taxes may apply. In other words, if you and your spouse file jointly and the combination of your benefits and overall income is more than $32,000 in a year, you may have to pay taxes.

The same tax rules may apply for people who are filing individually and make more than a certain amount of income during a taxable year. For instance, if you are submitting your taxes individually and make more than $25,000 in a year, the Internal Revenue Service (IRS) may impose taxes on a portion of your SSDI.

Some states fully tax individuals on their SSDI benefits. States like Utah and Montana do not exempt SSDI from being taxable. Other jurisdictions such as Colorado and Kansas will impose taxes based on an individual’s adjusted gross income (AGI). Granted, these states have rules that allow people to make deductions on their taxable income depending on specific requirements and income thresholds. In summary, many jurisdictions may see your SSDI benefits as a form of income subject to taxes.

But what about the State of Arkansas? Will Arkansans have to pay taxes on their SSDI benefits? Fortunately, if you live in Arkansas and are receiving the SSDI benefits provided by the Social Security Administration (SSA), you may be exempted from paying taxes on your benefits. However, even though your SSDI are exempted from taxation in Arkansas, doesn’t mean you don’t have to report them to the IRS. Always make sure you report every source of income to the IRS to avoid complications and potential problems with the government.

Do I Qualify to Obtain SSDI Benefits?

Eligibility for SSDI is based on rules and provisions set forth by the SSA. This means you will need to meet the requirements set forth by the SSA to qualify for your SSDI benefits. For instance, you will need to prove you are medically incapacitated and cannot return to work. Your disability must last, or at least be expected to last, for twelve months. Furthermore, your disability must be listed among those contained in the SSA’s “Blue Book.” The Blue Book has a list of severe conditions that qualify for SSDI benefits. In other words, your condition must match, or at least be related to, one of the conditions contained within the book. If your condition is not listed, it may not meet the SSA’s definition of a severe illness or injury, preventing you from qualifying for your SSDI benefits.

Additionally, your condition must be severe enough to prevent you from returning to your former job. If you cannot perform your old duties at your previous job, the SSA will try to determine if you can do another type of job despite your existing condition. If they determine you are capable of performing another task, you may not be eligible to obtain your benefits.

However, if the SSA determines you are eligible after applying their qualifying criteria, you can then qualify to receive your SSDI benefits. Many individuals can find themselves in a situation where the SSA denies their claim. In such cases, you have the option of appealing the SSA’s determination of your case. Retaining the services of an experienced social security attorney can help you understand the whole process and fight for your rights as an incapacitated worker.

Social Security Disability Lawyer Serving Arkansas

Ken Kieklak, Attorney at Law, understands the difficulties many people face when trying to qualify for their SSDI. That is why we dedicate our efforts to fighting aggressively and strategically to get the SSDI benefits you deserve. Don’t let a claim denial discourage you from trying again and winning the benefits you need. Call Ken Kieklak today for a free, confidential consultation regarding your case. To talk to our Arkansas Social Security Disability lawyers, call (479) 439-1843 today or visit us online.

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