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Question
What are the benefits or drawbacks that might have in relation to ssdi?
AI accountant’s answer:

Social Security Disability Insurance (SSDI) benefits can have both benefits and drawbacks when it comes to your taxes.

Benefits:
1. Non-Taxable Income: If your total income, including half of your SSDI benefits, is below a certain threshold ($25,000 for individuals and $32,000 for couples filing jointly), your SSDI benefits are not taxable. This can help keep your overall taxable income lower.

Drawbacks:
1. Partially Taxable Income: If your income exceeds the thresholds mentioned above, a portion of your SSDI benefits may be considered taxable income. Up to 50% or 85% of your benefits could be taxable, depending on your total income.

2. Lump-Sum Payments: If you receive a lump-sum payment of SSDI benefits for prior years, it could potentially increase your taxable income for the current year. However, there's a special rule that allows you to attribute the lump-sum payment to the years it was due, which could limit the tax impact.

Remember, everyone's tax situation is unique, so these general benefits and drawbacks may not apply to everyone in the same way.

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