CA Receiving nontax permanent industrial disability and VA benefits

[leozrock]

This is my second year receiving permanent industrial disability, however the difference from 2022 tax year I purchased a home and have received forms 1098 and 1099-INT from the mortgage lender and 1095B forms from CalPERS and US Dept.VA, what do I do with the forms and or am I required to file? 

[PattiF]

It depends, if you were not required to file a tax return last year with your permanent industrial disability, then you probably are not required to file one this year. Most disability payments are not taxable income.

If you received Form 1098 showing the mortgage interest that you paid, you do not need to use that unless you will be itemizing your deductions. Those would be used to reduce your taxable income.

The 1099-INT for bank interest would need to be filed if the amount of interest was greater than the number shown below for your filing status. Then your total taxable income requires that you file a return.

Please see this chart from the IRS to see if you need to file for the 1099-INT:

You do not need to file the 1099-B. Keep that for your records.