Special Needs Answers
SSDI: Is Social Security Disability Taxable?
SSDI payments, like Social Security retirement benefits, can be taxed, depending on the SSDI beneficiary?s other income. U...
Read moreWill I Pay Taxes or Penalties on Inheritance If I'm on SSDI?
- May 1st, 2024
Q
I am receiving $1,960 per month on SSDI. I am using my 85-year-old father's Honda. (I have a rusted, unsafe to drive 1995 Jeep Wrangler that I am scrapping for $500.) When Dad passes, I get the 2017 Honda CR-V and between $20,000 and $40,000 from his life insurance. Can I possess a travel trailer pull camper, with a value under $20,000? What taxes or penalties might I expect to pay?
A
Since you are getting SSDI, rather than SSI, there’s no limit on your income or assets. We don’t anticipate any taxes or penalties on your inheritance. However, there would be the normal taxes on any interest income once you invest the life insurance proceeds and any taxes on the vehicle and camper.
Harry S. Margolis practices elder law, estate, and special needs planning in Boston and Wellesley, Massachusetts. He is the founder of ElderLawAnswers.com and answers consumer questions about estate planning issues here and at AskHarry.info.