I am a 100% disabled veteran. Does this count as disabled for tax reasons?

[NYDU4X]

80 years old

[DoninGA]

There is not a tax credit for being disabled on a federal tax return.  You do not report your VA disability payments on a tax return.

[xmasbaby0]

For disabled adults:

There is an extra amount added to your standard deduction if you are legally blind.   Your federal return does not provide any other credits or deductions for saying you are disabled, with one possible exception.  

There is a credit for the Elderly and Disabled which is so small that very few people benefit from it—-it has not been updated/increased by Congress for decades.

ELDERLY OR DISABLED CREDIT https://www.irs.gov/help/ita/do-i-qualify-for-the-credit-for-the-elderly-or-disabled

There are some states that provide various credits to elderly/disabled folks, so watch for that when you prepare your state return.   The states that I know of that have anything for elderly/disabled are AZ, CT, DE, IA, MO, ND, NJ, NY, VE.   There may be others.

[Opus 17]

For IRS purposes, "disabled" means unable to perform gainful work, due to a condition that is permanent, or will last at least one year, or will lead to death.  Because the focus is on the ability to work, many people with medically recognized disabilities are not considered disabled on their tax return.

In any case, there are no additional tax benefits you can claim for being disabled.  It affects a few things if you care for someone else who is disabled, and it changes the treatment of your pension if you leave work on disability before full retirement age.  But there is nothing extra that will happen if you do or don't check the disabled box at your age.   If you receive disability payments, they either are or aren't taxable, depending on who pays, and your other income, and that calculation is not affected by checking the box.

[user17554756379]

Hey Level 15 Champ,

You didn’t answer the question…let me rephrase it for you…does a 100% permanent and total disability determination from the VA meet the definition of “disability” re: IRC Section 72(m)(7)?

[xmasbaby0]

@user17554756379 Not sure why you are asking the question of whether you are considered to be disabled by the IRS.   As already explained in replies above, there are no extra federal tax credits or deductions for being disabled.   What are you trying to do?

[user17554756379]

Again, so-called experts need to re-read OPs question.

i can think of at least two occasions where a disability affects income calculation/tax liability.

1) Waiver of the 10% early withdrawal penalty for a traditional IRA; and

2) Treatment as a “eligible designated beneficiary” exempted from the 10-year rule for RMDs from an inherited IRA.

For taxpayers under age 65, a physician must complete a statement certifying the permanent and total disability.

However, you don’t need a physician’s certification if you have a VA P&T disability determination.  In that event, use VA Form 21-0172 in lieu of a physician’s statement to claim “disability” status.

As mentioned above, there are at least two examples where a VA disabled individual could receive favorable tax relief.