Level 1

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Where do I claim my VA disability pay.

Forum|Forum|7 years ago
May 31, 2019
6 replies
14 views

I know it is non-taxable income but last year I had to still claim it.

TurboTax Deluxe Online

Best answer by

Hi Leelhark, my name is Alex.

Veteran’s disability benefits from the U.S. Department of Veterans Affairs are generally not included in taxable income. The portion of a Veteran’s disability payment which qualifies as a service-connected disability should not be included in your taxable income. If you receive a disability pension based on years of service, you should include that amount or portion of a pension in your taxable income.

Conditions for excluding disability pensions from taxable income

Service-connected disability pension payments you can exclude from taxable income result from active service in the:

Armed forces of any country
National Oceanic and Atmospheric Administration
Public Health Service
Foreign Service

Your Veteran’s disability payments should be excluded from taxable income if any of the following conditions apply:

You were entitled to receive a disability payment before Sept. 24, 1975
You were a member of or committed to become a member of a listed government service before Sept. 24, 1975
You receive the disability payments for a combat-related injury under certain situations
You would be entitled to receive full or partial disability compensation from the Department of Veteran Affairs if you filed an application

Refer to IRS Publication 907 for qualifying details.

How to enter nontaxable income in TurboTax to increase your Sales Tax Deduction

Nontaxable disability income (and certain other nontaxable income) can be reported in TurboTax to increase your sales tax deduction, lowering your overall tax liability. In TurboTax:

Select the Federal Taxes tab (Personal tab in Home & Business product)
Then choose Deduction & Credits and click on Explore On My Own.
Scroll down to Estimates and Other Taxes Paid, and click on the Sales Tax Start/Update box.
In the Sales Tax interview, click Continue with Sales Tax and select Easy Guide.
Enter your location and sales tax information. When finished, click Done.
Next is a screen titled Nontaxable Income, click Yes to add your nontaxable income.

In the Nontaxable Income box on the next screen, enter the total amount of all of your nontaxable income. Include the nontaxable portion of your Veteran’s disability income from the U.S. Department of Veterans Affairs. Do not include taxable income entered in other areas of TurboTax; they are automatically included when calculating the sales tax deduction.

Thank you for choosing Turbo Tax & have a great day!

-Alexander

J

joeburr

Level 2

Turbo Tax Deluxe Where do I enter VA disability pay

A

Anonymous

Answer

Hi Leelhark, my name is Alex.

Veteran’s disability benefits from the U.S. Department of Veterans Affairs are generally not included in taxable income. The portion of a Veteran’s disability payment which qualifies as a service-connected disability should not be included in your taxable income. If you receive a disability pension based on years of service, you should include that amount or portion of a pension in your taxable income.

Conditions for excluding disability pensions from taxable income

Service-connected disability pension payments you can exclude from taxable income result from active service in the:

Armed forces of any country
National Oceanic and Atmospheric Administration
Public Health Service
Foreign Service

Your Veteran’s disability payments should be excluded from taxable income if any of the following conditions apply:

You were entitled to receive a disability payment before Sept. 24, 1975
You were a member of or committed to become a member of a listed government service before Sept. 24, 1975
You receive the disability payments for a combat-related injury under certain situations
You would be entitled to receive full or partial disability compensation from the Department of Veteran Affairs if you filed an application

Refer to IRS Publication 907 for qualifying details.

How to enter nontaxable income in TurboTax to increase your Sales Tax Deduction

Nontaxable disability income (and certain other nontaxable income) can be reported in TurboTax to increase your sales tax deduction, lowering your overall tax liability. In TurboTax:

Select the Federal Taxes tab (Personal tab in Home & Business product)
Then choose Deduction & Credits and click on Explore On My Own.
Scroll down to Estimates and Other Taxes Paid, and click on the Sales Tax Start/Update box.
In the Sales Tax interview, click Continue with Sales Tax and select Easy Guide.
Enter your location and sales tax information. When finished, click Done.
Next is a screen titled Nontaxable Income, click Yes to add your nontaxable income.

In the Nontaxable Income box on the next screen, enter the total amount of all of your nontaxable income. Include the nontaxable portion of your Veteran’s disability income from the U.S. Department of Veterans Affairs. Do not include taxable income entered in other areas of TurboTax; they are automatically included when calculating the sales tax deduction.

Thank you for choosing Turbo Tax & have a great day!

-Alexander

S

SweetieJean

Alumni - Champ

Good reminder about the Sales Tax Deduction.

M

mountstandfast

Level 2

VA disability benefits and CSRS [if the disability is combat related and the VA payment is deducted from retired pay] is, or was, included in total income and would increase the amount on which the sales tax deduction is based. EXAMPLE -If taxable income was $65,00000 and VA benefits $5000.00, plus CSRS reimbursement was another $5000.00, the income on which the sales tax deduction is based should be $75,000.00 vice the $65,000.00 taxable income.

S

sumerbrunette

Level 2

I had no idea you could include this for a sales tax deduction.

M

Maggiegirl20

Level 2

I have been looking all over where I put my nontaxable value income I am 100%disabled

ColeenD3

Level 15

This answer above is from Alexander.

Nontaxable disability income (and certain other nontaxable income) can be reported in TurboTax to increase your sales tax deduction, lowering your overall tax liability. In TurboTax:

Select the Federal Taxes tab (Personal tab in Home & Business product)
Then choose Deduction & Credits and click on Explore On My Own.
Scroll down to Estimates and Other Taxes Paid, and click on the Sales Tax Start/Update box.
In the Sales Tax interview, click Continue with Sales Tax and select Easy Guide.
Enter your location and sales tax information. When finished, click Done.
Next is a screen titled Nontaxable Income, click Yes to add your nontaxable income.

M

Msamanda

Level 2

Where are you supposed to put your VA Disability Benefits when it is your only source of income? Although it is non taxable income, you must file a simple tax return in order to receive the COVID19 stimulus check. I've not bought or sold any property, but I still must include this to qualify for the refund. There is a place for Social Security Disability benefits and a place for pensions but no place for VA Disability Payments. I've looked at the IRS publications several times and VA Disability benefits alone are not listed.

M

mrchrisayers

Level 2

So just because I am 100% disabled with the VA, I can't get the Earned income credit or the Child Tax credit? I have four kids, and not getting this credit does not make any sense to me. The disability should count as earned income because I earned these disabilities serving this country.

X

xmasbaby0

Level 15

@mrchrisayers Sorry---the earned income credit and the child tax credit are only available to filers who had income from working. Congress wrote the tax law that way. For 2021 the child tax credit was treated differently, but it has changed for 2022 returns. If you did not have income from working in 2022 you cannot get EIC or CTC. Sorry.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**