Hello. Just recently was approved disability payments. Roughly 2100 a month with breakdown of 1400 mine and 350 each of my kids. Wife works roughly 80k a year. Wondering what type of taxes I will owe with this and best way to file. I've read 30-35% taxes possibly? =========>the best way to file in general is MFJ to claim your kids as dependents and reduce your tax liability as joint filers. In your case probably since you r spouse income is high; Social Security disability benefits can be subject to tax, but most people do not end up paying taxes on them because they don't have much other income.as a MFJ filer, you and your spouse have more than $32K per year, I mean provisional income, 50% of soc disability benefit plus your agi, in income including SSDI benefits, a portion of your soc disability benefits are subject to tax
I can still claim my kids as dependents? =========>> it depends; aslongas you file your return as MFJ probably your spouse can claim kids as her, so your, dependents on your joint return.
Read where they might have to file? And of course my back pay award will be claimed as well this year. Kids received small back pay awards of 1400 each also.=========>>as dependents they sometimes need to fiel their own returns aslongas their gross income exceeds their std deductions each year; for example, a dependent needs to file his/her return once her gross income exceeds $6.3K.