1040X... Heard Of It?

[mariorivera830]

Another vet and I were talking yesterday and she brought up that she used the 1040x to amend her filed taxes.

She said that she files this to lower her tax liability every year. I found it a little fishy. She's 100% not p&t and didn't retire from the Army.

Is this another veteran tall tale or is this something people should look into.

[Buck52]

if your married filing joint we just put VA compensation and don't put the Amount! or in the box that ask you your income just put retired disable Veteran.

I don't think you even have to put that down but that's what we been doing my spouse still works and we just file jointly! I have to pay tax on my SSRetirement but I read where they just use half of your spouse income so maybe I won't have to pay anything this year...this is my first year on the SSR income. SS says if your spouse makes over 32000 year then I will have to pay tax but I got a 1099 and it says use just half her income so that would be under the 32000..she makes about 55.000 year.

I am going to our senior citizens center they have free tax experts to help.

[mariorivera830]

Thanks everyone. I've been reading on that form for the past week.

She is only @ 60% and is my old hr rep. She told me that she uses this form to reduce her tax liability by whatever her compensation is.

Having worked last year and now am 100% and unemployed, this could be a huge pick me up financially. Any truth to this?

[john999]

I never heard of reducing taxable income by the amount of disability compensation you get. I get my disability retirement taxed, and my SSDI taxed because I make too much money from other sources that are taxable. I used to be in less than 5% taxable rate but not this year.

[deltaj]

I used this one year to amend my taxes when I discovered that my medical insurance premium could be deducted along with

medical bills if I had itemized deductions over a certain amount.

[ron91]

As stated by several above, the IRS 1040x form is used to amend federal returns. It is often used in conjunction with the filing of amended returns by military retirees when they have a retroactive effective date for VA compensation and their taxable military retired pay would have been offset by the amount of VA compensation received, if done in real time. A retiree must agree to waive military retired pay dollar for dollar in the amount of VA compensation received. CRDP restores waived retired pay and CRSC replaces all or some of service approved combat related disabilities. Not every retiree would be eligible for an amended return when retro VA compensation is received.

There are several IRS publications on this subject. See 21.6.6.3.20 within IRS and Veterans Disability Compensation (From Internal Revenue Service Manual) Veteran's Disability Compensation - Public Law 95–479, Section 301
http://www.irs.gov/irm/part21/irm_21-006-006r.html The information pertaining to amended returns for retirees is deep within the page. Again, not all retirees with retro VA compensation will qualify.

Ron

[bassrunnin1]

It's possible she may also be filing an amended return if she is looking to get EIC. EIC works on a bell curve as does some credits. So she might be playing around with the numbers which is a dangerous game with the IRS...