My 95 year old Grandmother gets Social Security (1500) and a VA Pension (1100). Does she have to file a tax return?

[flip0674]

She was told by a VA rep that she no longer had to file a Tax Return because she didn't make enough money. I work in Finance and I've never heard of anyone NOT filing a tax return. I just want to make sure that she is protected and that the VA-Rep isn't providing false information.

[xmasbaby0 · Accepted solution]

If the VA benefits and Social Security are Grandma's only income she does not have to file a tax return.

[xmasbaby0]

<a rel="nofollow" target="_blank" href="https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return">https://www.irs.gov/help/ita/do-i-need-...>

[VolvoGirl]

Lots of people don't need to file a return.  It's not always a requirement if you have less than a certain amount of income.  If she doesn't have to file then cancel any witholding she is having deducted from her checks.  She only has to file to get back any withholding taken out.  

Here's another FAQ on who has to file
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1901490-do-i-need-to-file-a-federal-return-this-year">https://ttlc...>

[VolvoGirl]

@xmasbaby0  is VA pension not taxable?  1100 x 12 is over the filing requirement of 11,900 for Single over 65.  None of the SS will be taxable.

[SweetieJean]

State filing requirements may be different.

[xmasbaby0]

VA benefits are not supposed to be taxable.  Guess we need to understand better if this is actually a military pension and not VA benefit of some other sort.

[xmasbaby0]

@flip0674 Does your grandmother get a 1099R for the VA money?

[VolvoGirl]

Or Virginia?

[xmasbaby0]

Ooooh...I did not think of it as maybe being state of Virginia!  But the OP mentioned "VA rep" so I assumed Veteran's Administration.

[xmasbaby0]

@flip0674 Did you mean Veteran's Administration or commonwealth of Virginia (VA)?  Meanwhile, it would still be helpful for you to use the IRS interview to help determine if she needs to file.  If not filing makes her nervous...I used to go through that with my own mom.  She did not need to file, but I would prepare a return, let her sign it, and mail it off anyhow so she would not stress out about not filing.

[flip0674]

I meant Veterans Administration. My grandfather got a pension from them, after he died, she received a smaller amount and they told her that since she didn't make that much money, she no longer had to file a tax return. It's been a few years and she hasn't filed.

When I took control of everything one of the first things I did was sit down with her to discuss her taxes and she said she hadn't filed in a few years. My heart sank to my butt and I about had a panic attack.

I've been told different things from different people including a few tax advisors. I'm trying to get a consensus of what I should do, just to protect her going forward. Like I said, she doesn't get much from the pension, around $1100 and $1500 from Social Security, after her expenses she's left with very little to herself. I actually pay for some of her stuff, phone, TV that kind of thing.

[xmasbaby0]

So she is receiving Survivor Benefits.  They are not taxable, nor do they have to even be entered on a tax  return.  She does not have to file.   Breathe  🙂

[xmasbaby0]

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/6256903">https://ttlc.intuit.com/replies/6256903</a>
She is receiving Survivor Benefits.  They do not have to be entered on a tax return,  Survivor benefits are not taxable.

[flip0674]

(Deep Breath), Thank you. This is good info, I was worried that she would have to pay back taxes or something and it would just drain her (or me). Thank you for the information, it's been a big help.