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Tophat827
New Member

As a 100% disabled veteran, must I file a tax return?

I am drawing 100% VA disability do I still have to file taxes and if not how do I get my tax refund

Tophat827
New Member

As a 100% disabled veteran, must I file a tax return?

I am going a military pension civil service pension and I'm getting 100% VA disability do I still file income tax

As a 100% disabled veteran, must I file a tax return?


@Tophat827 wrote:

I am drawing 100% VA disability do I still have to file taxes and if not how do I get my tax refund


Your VA disability benefits are not reported on a tax return, so if that is all the income you receive there is no reason to file a tax return. 

If the VA benefits are all the income you receive, what tax refund are you referring to?  If you do not have taxable income with taxes being withheld from that income there cannot be a tax refund.

As a 100% disabled veteran, must I file a tax return?


@Tophat827 wrote:

I am going a military pension civil service pension and I'm getting 100% VA disability do I still file income tax


From your other post - https://ttlc.intuit.com/community/taxes/discussion/re-as-a-100-disabled-veteran-must-i-file-a-tax-re...

 

If you are receiving pensions then report the pension income on your tax return.  You will receive a Form 1099-R for any pensions you receive.  The income from the Form 1099-R is reported on your tax return.  If taxes are withheld from those pensions the amounts withheld will be reported on your tax return.

You will receive a tax refund if your total tax labilities are less than your total tax payments.

As a 100% disabled veteran, must I file a tax return?

I know of a lot of 100% disabled who are also 20 year retirees who have filed and gotten the FITW stopped from their retired pay.  Check this link:

 

https://myarmybenefits.us.army.mil/Benefit-Library/Federal-Benefits/Federal-Taxes-on-Veterans-Disabi...

As a 100% disabled veteran, must I file a tax return?

Should a 100% disabled veteran file a tax return

As a 100% disabled veteran, must I file a tax return?


@Robertcraig wrote:

Should a 100% disabled veteran file a tax return


If the VA disability income is the only income you receive then there is no need to file a tax return.  However, if you did not receive the 3rd stimulus payment of $1,400 in the March - May 2021 timeframe then you should file a return for the Recovery Rebate Credit of $1,400.

As a 100% disabled veteran, must I file a tax return?

@Robertcraig If your only income is veteran benefits then you do not need to file.   Veterans benefits are not taxable.   If you have any other income you might need to file.

 

Who has to file?

http://www.irs.gov/uac/Do-I-Need-to-File-a-Tax-Return%3F

**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.**

As a 100% disabled veteran, must I file a tax return?

but what about the SSA income in this case, would it be reported?

I have Military Retirement income, VA benefits and SSA, but  I am 100 percent P&T disabled

I know the VA is not reported and yes the Military is reported, but what about the SSA in my case

As a 100% disabled veteran, must I file a tax return?


@califkansastax08 wrote:

but what about the SSA income in this case, would it be reported?

I have Military Retirement income, VA benefits and SSA, but  I am 100 percent P&T disabled

I know the VA is not reported and yes the Military is reported, but what about the SSA in my case


Social Security Retirement/Disability/Survivors benefits are reported on a form SSA-1099 and the benefits received are to be entered on a federal tax return.

 

Up to 85% of Social Security Retirement/Disability/Survivors benefits becomes taxable when all your other income plus 1/2 your social security reaches:

  • Married Filing Jointly - $32,000
  • Single or Head of Household - $25,000
  • Married Filing Separately - 0
PattiF
Expert Alumni

As a 100% disabled veteran, must I file a tax return?

The SSA-1099 is reported on your tax return. TurboTax will calculate the amount if any, that is taxable.

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As a 100% disabled veteran, must I file a tax return?

I know this response is almost a year late, but I wanted to post the answer for any future inquiries.  I came across this info from my peers regarding tax exemption on retirement pay.  After due diligence as well as confirmation from DFAS, the only way you qualify for this is if you are receiving "Military Disability Retirement Pay."  If on the other hand, you are receiving "Military Retirement Pay," then you do still pay taxes on it; therefore, you will still receive a 1099-R at the end of the year.  If you were one of those folks that submitted a W-4 form for exemption because you are 100% disabled and receive military retirement pay, you need to resubmit a new W-4 to change it back to where your FITW is getting deducted again.

Carl
Level 15

As a 100% disabled veteran, must I file a tax return?

Military disability pay is not paid by DFAS. It's paid by the Veteran's Administration (VA). Disability pay from the VA is not taxable or reportable on any tax return. That's why the VA does not send a tax reporting document of any kind. At best, the recipient of disability pay from the VA will receive a letter once a year outlining the benefit and any changes to the benefit that may have occured, or will be occuring in the near future.  It's also likely included with that letter or mailed separately from it, would be a 1095-A, 1095-B or 1095-C outlining the period of healthcare coverage that applies to the service connected disability.

In a case where one retired in the current tax filing year and they are awaiting evaluation/approval from the VA, DFAS will pay the entire amount of retirement due until such time the disability benefit kicks in. Once the benefit kicks in, the retirement pay from DFAS will (usually) be reduced by the amount of the disability pay. If the disability is retroactive to the date of retirement, then you get a refund for the taxes withheld by DFAS prior to the retroactive disability being approved. For some, this can be quite a large amount.  Just follow the guidance at https://www.irs.gov/individuals/military/special-tax-considerations-for-veterans and follow that guidance "TO" "THE" "LETTER" of perfection. Having been military, you should already know how picky they can be with it comes to following directions. Do no more, and no less than instructed.

 

 

Yawata
New Member

As a 100% disabled veteran, must I file a tax return?

I am an Army retiree with 100% service connected disability.  

I am receiving Army retirement pay as well as VA compensation amounting $3517.84 per month.  My question is with regard to my military retirement pay.  My Army retirement pay has been taxed by both Federal and State income taxes.  It was my understanding that any service connected disability would entitle income tax exemption from both federal and state.  Do I understand the tax law incorectly?  Please straighten me out.

Thank you

TomD8
Level 15

As a 100% disabled veteran, must I file a tax return?

@Yawata--

 

 Military retirement pay based on age or length of service is considered taxable income for federal income taxes.  Whether it is subject to state income tax depends on the laws of your state.

 

VA disability compensation is exempt from federal income tax.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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