topic I am using the software offline. I installed the updates,... in Get your taxes done using TurboTax

Where do I claim my VA disability pay.

leelhark — Fri, 31 May 2019 23:45:32 GMT

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

Turbo Tax Deluxe Where do I enter VA disability pay

joeburr — Fri, 31 May 2019 23:45:34 GMT

Turbo Tax Deluxe Where do I enter VA disability pay

Hi Leelhark, my name is Alex. Veteran’s disability benef...

AlexA — Fri, 31 May 2019 23:45:35 GMT

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

Good reminder about the Sales Tax Deduction.

SweetieJean — Fri, 31 May 2019 23:45:36 GMT

Good reminder about the Sales Tax Deduction.

Thank you :)

AlexA — Fri, 31 May 2019 23:45:37 GMT

Thank you 🙂

I tried to follow the steps in order to enter nontaxable...

chjr97 — Fri, 31 May 2019 23:45:39 GMT

I tried to follow the steps in order to enter nontaxable VA disability income and I was not able to get to step 3.

If your using online it may be a browser issue. Please in...

AlexA — Fri, 31 May 2019 23:45:42 GMT

If your using online it may be a browser issue. Please insure all required updates are complete. Some alternatives are to try using a different browser such as Google Chrome or using a different computer if possible. If non of these resolve the issue please post it as a new question so we may resolve it. Thank you.

I am using the software offline. I installed the updates,...

chjr97 — Fri, 31 May 2019 23:45:42 GMT

I am using the software offline. I installed the updates, but I still get to step 3.

I forgot to add: Due to this problem, I cannot go back an...

chjr97 — Fri, 31 May 2019 23:45:44 GMT

I forgot to add: Due to this problem, I cannot go back and enter non-taxable income so the software can calculate the correct sales tax deduction.

VA disability benefits and CSRS [if the disability is com...

mountstandfast — Fri, 31 May 2019 23:45:47 GMT

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.

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

sumerbrunette — Fri, 31 May 2019 23:45:49 GMT

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

Re: Where do I claim my VA disability pay.

Maggiegirl20 — Sat, 21 Mar 2020 17:21:23 GMT

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

Re: Where do I claim my VA disability pay.

ColeenD3 — Sat, 21 Mar 2020 17:30:23 GMT

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.

Re: Where do I claim my VA disability pay.

Msamanda — Thu, 16 Apr 2020 16:11:14 GMT

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.

Re: Where do I claim my VA disability pay.

DMarkM1 — Thu, 16 Apr 2020 16:50:38 GMT

You do not need to file a tax return if VA disability is your only income. That income is not reportable at all. To receive a stimulus payment you do need to provide an information only return. Here is a link to help with that.

Re: Where do I claim my VA disability pay.

Msamanda — Fri, 17 Apr 2020 16:55:12 GMT

The non filers section requires two steps to get your stimulus check one: your information and two: a simple return. I think I've got it though, thanks

Re: Where do I claim my VA disability pay.

mrchrisayers — Sat, 31 Dec 2022 22:31:06 GMT

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.

Re: Where do I claim my VA disability pay.

xmasbaby0 — Sat, 31 Dec 2022 22:58:10 GMT

@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.