There are many Social Security disability horror stories out there, but luckily, you can learn from them.

At Sullivan Law Office, we’ve offered Social Security help to many of our clients, and unfortunately, we’ve also heard many Social Security disability horror stories. The good news is that you can learn from many of these stories for your own application process. In our last blog, we touched on one Social Security disability story that you can learn from, keep reading to learn more:

Horror Story #2. Getting a large tax bill for benefits without ever receiving them.

One man who was receiving worker’s compensation also applied for Social Security disability benefits. After an initial, mistaken denial, the SSA approved his benefits. Unfortunately, since the SSA deducts worker’s compensation benefits from Social Security disability benefits, he didn’t actually end up getting any benefits from the SSA. Because he never actually received benefits, he ignored the 1099 that the SSA sent him. Unfortunately, according to tax law, if Social Security disability benefits are reduced due to worker’s compensation benefits, they are taxable. So this man ended up having to pay 85 percent of his Social Security disability benefits in taxes, even though he actually never received them!

What you can learn from this horror story.

The lesson in this situation is if you are currently receiving worker’s compensation benefits, you should always consult a lawyer before you decide to apply for Social Security disability benefits.

Would you like to learn about another Social Security disability horror story? If so, please stay tuned for our next blog.