Do I have to pay taxes on Social Security backpay paycheck that deposited in my bank without my advance notice?

On December 3, 2010, I requested an expedited reinstatement claim on Social Security Disability Insurance. In the same month of December, SSA deposited the lump sum in my bank account without knowing in advance. My employment had stopped in 2008 from 2006. I am assuming they would paid me back from the time of my employment stopped to the reinstatement claim date. With that being said, I didn't receive any letter from SSA about this lump sum amount. A week later, I received a letter from SSA for the provisional benefits that I will be also getting paid for the next month and each month for up to 6 months till SSA has reach a decision of my disability records. Although, I was expected that letter about the provisional cash benefits, which will pay for up to 6 months. There were no explanation in the letter for anything about the lump sum payment. From my understanding, SSA don't claim for to repay the provisional cash benefits. I am just concerned for the lump sum amount that was deposited in one day by SSA, so do I have to pay taxes on this part even SSA didn't tell me about it?|||disability payments are not taxable|||Depends on the amount. It is the same as SS retirement. Any income, even SSDI lump sum back pay, is income. That along with any and all other income you have is taxable. I would consult with a good CPA, or tax consultant. They can usually figure something out.



Social Security Retirement and/or Disability is taxable income. It's just in the majority of cases, the income is low enough there are no taxes for those income groups



On the lighter side, you could just play dumb and say you didn't know you had to claim it because it came with out notice. Hey, the government generally thinks all of us outside the beltway are stupid anyway, use it to our advantage when we can :-)