If you live in Illinois and receive Social Security disability, you may wonder, “are SSDI benefits taxable?” In Illinois, state laws exclude SSDI benefits from taxation. In most states, SSDI benefits are not taxed if Social Security disability is your only source of income.

Can I work while receiving social security benefits? The Social Security Administration will look closely at the type of work you perform, your daily work routine, and your daily or weekly work hours to determine whether you are disabled. If you are still working and applying for Social Security disability benefits, your application may be denied.