SSDI TAXABLE INCOME

Forum|Forum|5 years ago
April 2, 2021
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My sole source of income is SS Disability 2018 to 2020, I am single and own a home. No Federal income taxes are taken out. For 2018 from SS box 5 = $31,000 2019 =$31,900 and 2020 = $32,400. When I calculate notice 703 for each year taking 50% of incame line A. on line B. the instructions for Si9ngle 1. suggests NO TAXABLE INCOME SINCE AT 50%, is about $15 to $16K well below the $25K so NON TAX. In 2017 a CPA did not put any income under line 7 form 1040 and I rreceived a $900 REFUND BUT WHEN I DID MY TURBO TAX 2018 FEDERAL USING THE $31,000 FROM FORM SSA-1099 PER ABOVE BOX 5 .....I OWE ABOUT $3,000 OR ALMOST A $4,000 SWING. WHEN FILLING OUT INCOME ON TURBO TAX DO I PUT THE FULL $31,000? DOES IT SEEM RIGHT (BASED ON IRS LAW) THAT I WOULD HAVE TO PAY 10% WHEN I AM TOTALLY DISABLED AND CAN'T WORK?

Tax Advice

ColeenD3

Level 15

Something seems wrong somewhere. Below is the worksheet. If this is your only income and there is no withholding, you don't need to file.

kargdaleAuthor

Level 2

Thank you Coleen,

Why do you think sometthing is WRONG?

In NOTICE 703

A = BOX 5 my BENEFITS = $31,000

B = ENTER 1/2 A = $15,500

C,D = 0

E = B + C+D = $15,500 OR PER 1. BENEFITS NOT TAXABLE BELOW $25,000

1. How are BENEFITS different than WAGES?

2. IF I FILE

For 1040 lINE 5 = 1 EXEMPTION

7 = 0 WAGES ?

Is there a Deduction either Itemized since I own a home and pay interest = $4,100, Taxes = $896 and PMI = $1,066? OR USE STANDARD DEDUCTIONS?

3. AM I DO A REFUND OR NO SINCE I HAVE NOT PD FED TAXES?

4. I HAVE NO WITHHOLDINGS BUT WOULD LIKE TO FILE Such that i have filed 2018 - 2020 so they have heard from me.

5. I DO OWE SOME BACK TAXES and considering, if IRS asks to begin a repayment plan. I owe a large amount back to 2008, what YEAR can IRS collect back to?

Thanks Coleen

VolvoGirl

Level 15

If you have no other income you DO NOT need to file. SS or SSDI or ssi is not taxable at all. It is only partially taxable if you have Other income above the amounts listed. And there is no benefit in claiming deductions or credits or dependents.

SS Benefits is not Wages. Wages are only from jobs where you get a W2.

You only get a Refund if you have withholding taken out from W2 wages or from other kinds of 1099 income.

You do not need to file every year. Only if you have income to report. The IRS doesn't care. If you want to file a return for some reason you will have to print and mail it. Or you can enter $1 of fake interest to let you efile. You could get a blank 1040 form and enter all zeros on it.

https://www.irs.gov/pub/irs-pdf/f1040.pdf

Here are the 1040 Instructions

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

kargdaleAuthor

Level 2

Thanks for your answer, I will take your advice and not file.

Another ?

I DO OWE SOME BACK TAXES and considering, if IRS asks to begin a repayment plan. I owe a large amount back to 2008, from a premture withdrawal from an IRA.

What YEAR can IRS collect back to?