Do I need to file taxes?

[broncovet]

While VA compensation is "not taxable", and, according to my tax person should not be included on your tax form, some Veterans "may" need to file.  

To find out, go here, and answer the questions:

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

[brokensoldier244th]

Yup, its a good idea to, especially when it comes to things like dependents, or a mixed household (spouse/partner has income- you are an extra dependent to the calculation bringing your tax liability down), some tax credits are not income based, or have really low thresholds.
 

I worked like 10 hours a week in a library in the stacks for a few years to build up gradually to working again but it was enough to get me over the income hump so that our family had an easier time with things like child tax credit and EIC. 

 

Edited April 12, 2022 by brokensoldier244th

[broncovet]

Correct.  Dont forget about EIC, if you are eligible.  Mostly for EIC, you have to meet the income requirements, usually have children in your household, and have "earned income".  

Most 100 percent  disabled Vets dont have "earned income", (wages, tips, etc), because you have to be working to have earned income.  

Stock dividends, investment income does not meet IRS defination of "earned income".  

Not filing if you are eligible for EIC costs you money.  

Example:  If you worked at a job during the summer, and your employer witheld taxes, then you need to file to get those refunded to you, if applicable.   

As always, ask your tax advisor, or go to IRS website if unsure of your situation.  

Edited April 12, 2022 by broncovet

[john999]

If you and a spouse get SSA, pension or capital gains or dividends then you probably have to file.  You don't want the Man sending you a letter three years later telling you that you owe IRS plus penalty and interest.

[broncovet]

You should be safe if you follow the IRS link I posted above, and provide the requested information so the computer can figure out if you must file or not.  Then, do as the official IRS computer figured out for you.  

If filing is totally unnecessary, I sure would not waste the time, effort, or money filing taxes, "just in case"...as long as you use the software to be sure.  Or, ask a professional tax advisor.  

I recently completed my taxes..I had to pay under $100, and Im okay with that, and will mail the check to IRS today.  

[AlizaFry]

Hey everyone! Hope you're doing OK! I just wanted to leave a comment on this thread in case anyone else stumbles on this question of whether VA compensation needs to be included on a tax form. My tax person told me that it's not taxable and shouldn't need to be included.

[ShrekTheTank]

51 minutes ago, AlizaFry said:

Hey everyone! Hope you're doing OK! I just wanted to leave a comment on this thread in case anyone else stumbles on this question of whether VA compensation needs to be included on a tax form. My tax person told me that it's not taxable and shouldn't need to be included.

It is not taxable.  Only on the disability.  If you get retirement and pension, it is different.