Jump to content

Sponsored Ads



  • Latest Donations

  • Advertisemnt

  • 14 Questions about VA Disability Compensation Benefits Claims

    questions-001@3x.png

    When a Veteran starts considering whether or not to file a VA Disability Claim, there are a lot of questions that he or she tends to ask. Over the last 10 years, the following are the 14 most common basic questions I am asked about ...
    Continue Reading
     
  • Ads

  • Most Common VA Disabilities Claimed for Compensation:   

    tinnitus-005.pngptsd-005.pnglumbosacral-005.pngscars-005.pnglimitation-flexion-knee-005.pngdiabetes-005.pnglimitation-motion-ankle-005.pngparalysis-005.pngdegenerative-arthitis-spine-005.pngtbi-traumatic-brain-injury-005.png

  • Advertisemnt

  • Advertisemnt

  • Ads

  • Can a 100 percent Disabled Veteran Work and Earn an Income?

    employment 2.jpeg

    You’ve just been rated 100% disabled by the Veterans Affairs. After the excitement of finally having the rating you deserve wears off, you start asking questions. One of the first questions that you might ask is this: It’s a legitimate question – rare is the Veteran that finds themselves sitting on the couch eating bon-bons … Continue reading

Sponsored Ads

  • Searches Community Forums, Blog and more

  • Donation Box

    Please donate to support the community.
    We appreciate all donations!
  • 0
rpowell01

IRS saying I owe them $$$

Question

Received a letter today from the IRS and they are stating that since my students loans were discharge/foregiven I now owe them some $$$ because I didn't add the student loans discharge as income to my 2014 taxes. My student loans were discharged because I became too disabled to work and I was awarded TDIU retro back to July 2013.

What are my options? Should I go ahead and pay it or is there something like a benefit for disabled veterans so this should not be included as income?

 

 

Share this post


Link to post
Share on other sites

Recommended Posts

  • 0

Did you file a return for 2014?  If so, get an accountant to file a 1040X for all tax years including the 2013 tax year (also 2015 if you didn't find out about your rating until 2016).  You were disabled which allows for additional beneficial provisions.  I don't know your 2013 tax status but the offset could be enough to cover you.  Talk to a good accountant.

Share this post


Link to post
Share on other sites

Ad

  • 0
On 5/5/2016 at 1:00 PM, rpowell01 said:

Received a letter today from the IRS and they are stating that since my students loans were discharge/foregiven I now owe them some $$$ because I didn't add the student loans discharge as income to my 2014 taxes. My student loans were discharged because I became too disabled to work and I was awarded TDIU retro back to July 2013.

What are my options? Should I go ahead and pay it or is there something like a benefit for disabled veterans so this should not be included as income?

 

 

From earlier research, the VA Disability is the best way to go for getting rid of student debt with NO taxation. If I ever survive the VA with TBI, I will be doing that too. I am surprised no one knowledgeable with experience in 2 months has spoke up yet.

Either way, something is wrong. Even with SSDI, you can supposedly get out, but that is web-talk so I can't really say for sure. It is probably something that needs to be stipulated when the forbearance process takes place with the school loan authorities. Either the school loan authority or the VA did not do their due diligence.

Hopefully you have got it settled, but no, you should not owe 33% of your school loans when you are disabled permanently. Please post to tell us where you are at. It sounds like a government scam to me.

TALK to the School Loan authorities FIRST before you start spending money on professionals. They are actually quite nice and Veteran friendly.

Edited by armorer

Share this post


Link to post
Share on other sites
  • 0
39 minutes ago, armorer said:

From earlier research, the VA Disability is the best way to go for getting rid of student debt with NO taxation. If I ever survive the VA with TBI, I will be doing that too. I am surprised no one knowledgeable with experience in 2 months has spoke up yet.

Either way, something is wrong. Even with SSDI, you can supposedly get out, but that is web-talk so I can't really say for sure. It is probably something that needs to be stipulated when the forbearance process takes place with the school loan authorities. Either the school loan authority or the VA did not do their due diligence.

Hopefully you have got it settled, but no, you should not owe 33% of your school loans when you are disabled permanently. Please post to tell us where you are at. It sounds like a government scam to me.

TALK to the School Loan authorities FIRST before you start spending money on professionals. They are actually quite nice and Veteran friendly.

The student loan discharge is considered income by the irs,  our cpa handled all the details when my was discharged and we did have a tax burden because of it. 

Share this post


Link to post
Share on other sites
  • 0

http://statesidelegal.org/student-loan-discharge-or-forgiveness-and-military-service

Even though I have not had any income to use him in several years, I have a great accountant. He may be the best there is, but I will do my homework first.

I don't have anything to worry about yet anyway. But I didn't have a thing to do with my injury except being a blind Patriot. And I had to pay to get it diagnosed myself after 34 years with a lifetime of pain and misery. With research and homework, hopefully it will just be a normal $450 yearly flat tax-return accounting-fee. I can see where it could be a variable repayment differences with a wide variance. But if it is on an income sliding scale, disability and injury income are non-taxable, so I'd think po' Vets have a bargaining advantage. Anything from VA Disability is NON-TAXABLE, lump sum or monthly.

The above link is from a highly credible VA resource and the most comprehensive breakdown I have seen yet; even if it is dated a couple of years.  Ymmv and probably will.

Edited by armorer

Share this post


Link to post
Share on other sites
  • 0

I am married and my husband has taxable income and my ssdi is partially taxed most years because we exceed the limit for it not to be taxed, nice right?  but our cpa worked wonders to minimize the tax burden of my student loan discharge.  Not all cpas know what to do, and I had one that was a jackask and treated me like crap as if I had someone taken money from him.  UGH find a good cpa, and don't stress.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Ads

  • Ad

  • Latest News
  • Our picks

    • OK so I had pancreatectomy in 2003 due to an impacted goldstone 2/3 of my  Pancreas was removed I am type one diabetes with very large scars continued diarrhea stomach problems Constant back and shoulder pain I recently received a Nexus letter from my  endocrinologist related to my service in the gulf war.  Any suggestions or advice from anyone
    • I would like to meet other Hadit members who live in Michigan.  We have at least two major VA Hospitals (Battle Creek, Ann Arbor).  Or maybe you go to the the John Dingell in Detroit.  

      I like Ann Arbor.  I like the fact that most of the doctors there are also at the UM Hospital.  I don't like how uickly they seem to turn over though.  
      • 2 replies
    • Really?
      I am confused.  A few days ago I spoke to a person at a VARO who said if I die from something other than service-connected my husband gets zero, zilch, squat.  Hmmmmmm, it seems the rules change willy-nilly...I have been rated 100% P & T for over 10 years, MS is static, and I am 56 years of age.

      Can a fellow Veteran shed a light on this?

      Thank you.
      • 15 replies
    • Fund raising for HadIt.com
      The site is supported through ads and ad free subscriptions, we are also asking for any support you would like to send our way. You can give a $1 or more it all helps. Keep in mind though that it is NOT tax deductible and we are NOT a non profit. As the site grows so do the costs and ads and subscription do not always keep pace with the costs. Any help is appreciated, but not required.
      • 11 replies
    • Carol Ozanecki- Blue Water vet Advocate called me with this news:

      https://www.stripes.com/news/lawmakers-launch-new-effort-to-provide-agent-orange-coverage-for-blue-water-navy-vets-1.525395

      Also there is a article in Pop Culture she sent to me----mentionig Blue Water vets buy I felt it was too political to post here. You can google it if you want to read it.

       

       
      • 10 replies
×

Important Information

{terms] and Guidelines