Is the SSDI taxable income to all persons? Not, SSDI is taxable income only upon the event of your combined income going beyond the IRS threshold. The combined income is the adjusted gross income + tax-exempt interest plus half of the SSDI benefits. Within the middle threshold range, which is between 50-100% of your income, 50 percent of your SSDI can be taxed. In case it goes beyond the upper limit, up to 85% can be taxed. This however does not imply that 85 percent is taxed at 85 percent but it merely implies that the said portion will be included in your taxable income and taxed according to your standard income tax rate.
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