SSDI and Tax Returns

[ksjane]

What is the name of your state? KS

Will give more detail if needed. Here is the scenario. A relative had a stroke last year, she was approved in September 2006, she now receives disability...SSID -- (Not sure what the difference is between that and SSI) If she files her income taxes this year and is able to receive money back as opposed to having to pay, will she be able to keep her tax return or is she required to turn that money over to SS? Someone said she is required to do so, but I can not understand why she wouldn't be able to keep that money --she worked--it belongs to her-- and can not seem to find anything anywhere about it. Thanks in advance.
KS

 

[Ozark_Sophist]

SSDI is merit based, while SSI is means tested. Your relative earned enough work credits to qualify for SSDI. Under this program, there are no asset limitations or spend downs required to continue receiving disability. At tax time, the SSDI income is reported and depended on your relative's total income, some, all, or none of the SSDI may be taxed. If she qualifies for a tax return, she keeps it.