Do you have to pay taxes while on ssdi?
I traded stocks short term but in total it was a loss, so there was no additional income. I'm on SSDI. I was wondering if I still have to file taxes.
- MathewLv 77 years agoFavorite Answer
When your stock trades are reported to the IRS they use the proceeds of each sale as reported on a 1099-B to calculate your income unless you file a return. So you buy stock a to day for $1,000 an sell it tomorrow for $999. You have a loss of $1. But the IRS will not know that you had a loss until you file a Schedule D with appropiate forms 8949. Make 100 trades like that and the IRS will send you a tax bill for $100,000 plus 85% of your SSDI.
- JudyLv 77 years ago
Depends on how much other income you have, other total joint income if you're married. If SSDI is youf only income, no you don't owe federal income tax.