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Can I file taxes from my disability benefits?

I get disability benefits can I still file taxes
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2 Replies

Can I file taxes from my disability benefits?

You do not mention if you are receiving Social Security disability or some other sort of disability benefits.  If Social Security disability is your only income you do not need to file a tax return unless you have a 1095A for marketplace health insurance.     And....what are you hoping to accomplish?   If you have child-related credits in mind, you are not eligible for any of the refundable child-related credits unless you have income from working.  Do you have any other income besides the disability?    What is your filing status?    Are you filing a joint tax return with a spouse?  

 

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.**

Can I file taxes from my disability benefits?

Disability benefits from a workplace may be taxable if the premiums are paid by your employer on a tax-free or pre-tax basis.  You would get a W-2 from the employer or the benefits company and report that as normal.  Social security disability benefits may be taxable if you have other taxable income (like other wages, gambling winnings, pension or IRA withdrawals, etc.)

 

Being on disability is not an excuse to not pay taxes on other income that would normally be taxable, like investments, gambling, pension, or IRA withdrawals.  You can always prepare a tax return -- Turbotax online is "free to start" and you only pay if you need to file a return.  If your income is not taxable, Turbotax will tell you that you don't need to file.

 

If you are asking the backdoor question of "do I still get child or other tax credits if I am disabled" that depends on all your tax facts and income and we can't answer without a lot more information.   Workplace disability payments on a W-2 are usually considered "income earned from working" for the first 12 months, assuming you are less than your full retirement age, and are considered income not earned from working after 12 months on disability. 

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