TDIU

[Thai Vet]

Is TDIU same as 100% for tax exemption? Or is it just that you get comp rate as 100%?

[broncovet]

The IRS has a page on their website to help you know if you need to file taxes, here:

https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return

If "your only income" is VA comp and social security, I dont think you need to file.  

But, especially if you did things like drew money out of an IRA, sold your home for a profit, etc.  you may need to file, but use the form provided in the link above,  to know for sure.  

[Dustoff1970]

As I recall as a former financial and tax accountant with a degree in financial/tax accounting VA disability compensations is not taxable income and does not need to be entered as income on the tax form.  Of course things may have changed since I retired from tax accounting many years ago.   Then only taxable income was to be entered on the 1040.  Cheers.

My comment is not legal advice as I am not a lawyer, paralegal or VSO.

[Tango India Mike]

On 4/12/2022 at 7:10 AM, Rattler767 said:

The VA does not send you 1099's because you benefits are Tax free.  I know because I ask. Soial Security can be taxed but only if you have Taxable Income. (ie. money you earn from work)

From my understanding, social security can only be taxed if you have "Earned Income". Retirement income is not earned income, but military retirement IS taxed and not considered earned income. If you get a 1099R for it, it does not count as earned income. So, it is not totally accurate to simply say "taxable Income". It must be taxable EARNED income. Someone smarter than me may correct me on this, but this is how I understand it.