FA Officer at College Falsifying FAFSA

Taxable income is anything that is used to determine your tax liability, even if that liability turns out to be $0 (i.e. you owe no tax). So yes, if the SSD benefits are considered to be at least partially taxable, the taxable portion will need to be reported on FAFSA line 45.i., even if your total taxable income was below the standard deduction amount.