DAVE BARKER; I guess this is as good of place as any to put this. REX VVVVVVVVVVVVVVVVVVVVV IRS - More on Stimulus Package Tax Rebates
Stimulus Package Tax Rebates More Info
Recipients of VA disability compensation, pension and survivors benefits may qualify for economic stimulus payments this year from the federal government. Individuals who might not otherwise be required to file a 2007 tax return will need to file a return this year to receive the stimulus payment. Detailed information is available on the Internal Revenue Service website.
It clearly gives official details in the link Rex gave us. Thanks Rex. Dave
"Especially for Veterans' Benefits Recipients
Many veterans who receive benefits from Veterans Affairs are not required to file a tax return. But they need to this year to get the stimulus payment. Many can use the simpler Form 1040A."
SSDI is taxable at a certain level. VA Benefits are not. SSDI is taxable based on your total income. If you are required to file a tax return, then you must list SSDI or SSR. Based on your other income, part or all may be taxable. That includes the income of a spouse and investment income.
If you receive SSDI and VA Comp and that is the only source of income which neither is taxed then that is declared on your tax statement for this stimulus package why would you then have to possibly pay taxes if never having taxes taken out before? Just a little confused
I heard that if you haven't filed a tax return since you became disabled,.. and if your checks are all direct deposit every month, that the money will automatically be deposited into your account.
You must file a 1040A listing your VA compensation on it and note that it is VA compensation. At a certain level of income - well over the $12,000 a year most people get on SSDI alone, SSDI (and retirement) is taxable.
If you have a spouse that works, then you may pay tax. I know it first hand. 85% of my SSDI is taxable.
Flash, because that was the rules set to get a check - you had to file a tax return, even if you did not have taxable income.
Those of you who receive SSDI get a statement at the end of the year indicating how much year earned. On the back is a formula to calculate if you owe.
It also says, if you earned over $25,000 for single people or $32,000 for married you owe. I did not earn anywhere near that much, probably about half of the $32,000.
I use a computer generated program that indicates how mush I owe or get back at any given point. When I entered my SSDI it jumped to oweing $3,000, so I deleted it.
I file every year because my wife works and I have a 'business' at home. I have earned no money, but I do have expenses, so I operate at a loss. I'm waiting for the IRS to tell me to quit.
Bob, you understand you are required to report it. It is not optional by law. Sooner or later the IRS will catch you and it will cost more than you owe.
You know Bob, I have no idea what is correct, but you can go to <<Link deleted by MOD per rules>> and fill out a tax return, and quickly find out, you don't commit yourself to anything, just information.
This message has been edited. Last edited by: Dave_M,
My understanding (and I used to have a tax practice - I am a trained accountant with a specialty in taxation) is that you must report it on the return even if it is not taxable,and calculate the taxable portion. I do. Most software will determine if it is taxable automatically.
I use TaxAct, it is similar, but I have heard horror stories about TurboTax. I'm not going to get into the goods and/or bads, just letting you know that TaxAct is basically the same type program.
<<Link deleted by MOD per rules>>
This message has been edited. Last edited by: Dave_M,
When I first started receiving SSDI and VA I did TRY reporting them because there was a line for it. I was not over the maximum, but was taxed anyhow (the $3,000). At that time I checked with SSA and was told,"if it's not over the minimum, do not include it".
If I did, I would be paying AT LEAST the $3,000 every year, regardless of how much I earned. It would be taxed as an INCOME.
If in the future the IRS audits me and expects me to pay back the money I stole, they can throw me in jail. The only thing I have to lose, is the money I have already spent to survive in this OVERPRICED, UNDERPAID country.
Bob the rules state that the percentage of your Social Security that is taxable is based on your adjusted gross income. Even if you owe no tax, you are supposed to record it on your tax return, if you are required to file a return.
Taxation of Social Security Benefits
Depending on your total annual income, a portion of your Social Security benefits, or those of your spouse if filing jointly, may be subject to income tax.
If the total of your taxable pensions, wages, interest, dividends, and other taxable income, plus any tax-exempt interest income, plus half of your Social Security benefits are more than a base amount, some of your benefits will be taxable. The base amount is $0 for marrieds filing separately who lived with their spouses at any time during the year; $25,000 for singles, heads of households, and marrieds filing separately who didn't live with their spouses; and $32,000 for those who are married filing jointly. These dollar amounts are not indexed for inflation.
The amount of your Social Security benefits that you must include in taxable income depends on the total of your income plus half of your benefits. The higher the total, the more benefits that must be included in taxable income. You may have to pay income tax on anywhere from 50 percent to 85 percent of your Social Security benefits.
Dave could you please clear something up for me as I am just a little confused. I don't work but do receive SSDI and VA Comp. My wife doesn't work and I have two kids. So the only income for my family in 2007 has been and currently is my Soc Sec and VA. I don't have any other investments or other source of income. Am I still liable for tax? Because I can tell you things are very tight...any tax payment for me would put me under fairly quickly.
No you will not pay tax because your total income is less than $32,000. You need to file a 1040A this year online is OK - to get the economic stimulus rebate of $300 each.
