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DIC and SS Disabilty Tax question


CathyG

Question

I hope I am in the right forum. I apologize if I am not. 

I receive DIC, and SS disability as well as a portion of my late husbands SS disability. I have not filed taxes in years because I was always told its not taxable and its my only income. Well I just bought a home last year, and I recently saw someone post that if your benefits are 25,000 or more then you have to file. Now Im scared and not sure if I should file this year because I bought a home and I do collect over 25,000.  Can someone advise me please? The SS Disability together does not equal 25,000 but, with my DIC its way over.

Thank You

Cathy

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  • HadIt.com Elder

VA benefits are not taxable; therefore, VA does not send out 1099 forms. If you need a statement of benefits paid, please contact your VA Regional Office.

However you may want to check with SSA on other paid fees such as the SSDI Program!

if your hubby was 100% P&T and died from his S.C. INJURY OR DIESEASE you should be eligible for the Property Tax Deductions/ check with your local county tax office.

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Yes, I will be applying for the property tax exemption this year as I missed the cut off last year.

My husband died from Agent Orange related illnesses. 

So, are you saying that no, I do not need to file taxes? And I dont even have to list my DIC as income?

 

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  • HadIt.com Elder

no

You need to file your taxes  you just don't need to put down the Amount you get from DIC Or any other Veteran benefits you recieve.  they are tax free.

now its different with the SSA if you get SSDI  you will need to pay taxes on that or check with the SSA and ask them?

..but I'm fairly sure your SSDI PAYMENTS ARE TAXABLE. but if you have certain deductions that will off set any tax payments you might own.

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I found my answer regarding my DIC.

Dependency and Indemnity Compensation (DIC) is a tax free monetary benefit paid to eligible survivors of military Servicemembers who died in the line of duty or eligible survivors of Veterans whose death resulted from a service-related injury or disease.  You are not required to report these amounts on your tax return.

You will need to report your Social Security income.

But, even tho my SSD is below 25,000, would still be in my benefit to file because I bought a home last year???

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I am a widow too ,getting DIC, SSA, and also some income from my farm and a few investments,and I have always filed a federal and state tax return.My annual church contributions are usually much more than any taxes due on the investments or lease income ,but I still always have the returns done by a local tax accountant, even if I don't owe anything.

Buck is right as to most locales have exemptions for property taxes for vets and their survivors.

I get 2 separate property tax exceptions due to my deceased husband's service but in order to get them I have to produce a copy of my state tax return, and I am pretty sure a copy of my IRS return as well.

Having a tax person does not really cost much at all and it gives peace of mind knowing the forms are filled out correctly because you might need both IRS and state tax forms filed, for property tax exemptions and even special senior citizen exceptions,if your tax locale offers them as well.

 

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I am a widow too ,getting DIC, SSA, and also some income from my farm and a few investments,and I have always filed a federal and state tax return.My annual church contributions are usually much more than any taxes due on the investments or lease income ,but I still always have the returns done by a local tax accountant, even if I don't owe anything.

Buck is right as to most locales have exemptions for property taxes for vets and their survivors.

I get 2 separate property tax exceptions due to my deceased husband's service but in order to get them I have to produce a copy of my state tax return, and I am pretty sure a copy of my IRS return as well.

Having a tax person does not really cost much at all and it gives peace of mind knowing the forms are filled out correctly because I am sure you will need both IRS and state tax forms filed, for property tax exemptions and even special senior citizen exceptions,if your tax locale offers them as well.

I just noticed that my 1099 for SSA says 'part of your Social Security Benefits shown in box 5 may be taxable income.' and refers to the back page.

I just take all of my 1099s and annual VA statement for my DIC and my church contribution statement to my tax lady, and that way I know it is done right and that I have the copies for my property tax exemptions/senior citizens partial tax exemption. Your tax assessor might have a different criteria than what we have here in this part of NY.

 

 

 

Edited by Berta
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