Re: Filing Taxes from SS Disability

[Guest guest]

Donna in Indy,

At the end of 2008/or beginning of 2009, your son should have received

a Form 1099 - Social Security Benefit Statement. On the other side of

that page, there is Notice 703 and a short worksheet to determine

whether or not disability benefits are taxable. There is also

information on filing status as single, married, or filing seperately.

Gretchen

[Guest guest]

Although I don't get SS disibility, I do get a state disibility. I thought I

didn't have to file taxes and found out later on that I was supposed to, that

mistake cost me over $5000. So check with an accountant to be sure.

Ron

[Guest guest]

Donna,

It's a shame what has happened. Your son has lost out on the Child Tax Credit,

EIC, and Additional Child Tax Credit (if he was allowed any at all). Because she

filed Married Filing Separate, she's not entitled to any of this either. They

should file Married Filing Joint to recieve the benefits.. She will get the

dependent credit for them, but nothing else. SSI isn't taxable, but he can still

try to file to see if he may receive anything back. It would probably be best to

file on irs.gov. Its free. Best of Luck to him.

 

Debbie-Taxpreparer in MO

Life is a Journey...Destiny Unknown 

From: Donna <myannahbell2000@...>

Subject: Filing Taxes from SS Disability

Date: Sunday, February 1, 2009, 5:44 PM

I'm sure it's different in some states, but does anyone receiving SS Disability

have to file taxes at the end of the year?

I ask because my son's wife threw him out on Jan. 1st 2009.

She went and filed " married but separated " and claimed their 2 daughters so he

would not get any of the return, which would have been thousands of $.

Her attorney told her to file that way because his disability was not taxable

income, and therefore he wasn't entitled to any of the refund, nor could he file

on his own & claim the girls.

Anybody have any thoughts?

Donna in Indy

[Guest guest]

Donna,

Usually people who only get SS as income will not have to pay taxes.

If you have other income from investments, pensions, or a spouse, your

ss may become taxable.

If you can't handle doing taxes yourself with something like Turbo

Tax, (there's a free on-line version) consult a tax professional.

[Guest guest]

Debbie,

He only received disability approx. the last 4-6 months of 2008.

He will get a W-2 from one employer he had at the beginning of 2008.(not very

much though). What about renters deduction? etc.

He paid the rent for 12 months that they lived there in 2008 therefore

supporting 2 children.

A woman at H & R Block told me that either one of them can legally come in, file

seperately & claim the kids??? Not true?

Is it a first come first wins basis? Whoever files first & claims the kids, the

other one is just SOL?

 

He should be entitled to half of that return, which would be approx 5-$6000.00

Is there anything he can do at this point?

 

Thanks

Donna in Indy

[Guest guest]

Yeah, what's a shame, is that people with disabilities are made to live like

street dogs, before getting any help.

In this country, or any country, there is absolutely no reason for anyone who is

so disabled that they are on any type of disability pension, to ever have to

file anything having to do with taxes, EVER!, regardless of any 'wealth', or

other income, that person might have.

This new Immaculate-Stimulation Bill, should contain provisions for full

handicap accessibility, and repairs, in individual's homes, as well as the

community (which the impotent ADA has never accomplished nor the equally inept

P & A organizations throughout the fruited plains), new vans/lifts for those

needing them (go choke on the

miserable $1k discount), personal assistance, etc.

Talk about creating NEEDED jobs!!!!!!!!!

[Guest guest]

Donna,

There's no federal renter's deduction. He could get earned income credit for the

kids and using his income as the basis for earned income credit will probably

raise the amount considerably, but honestly the ex isn't going to get child

support because the kids no longer live with their father. If the wife provided

most of the 2008 income it's probably best to let her have the tax return. Your

son is going to receive $1300 a month, $2100 if the family stays together.

Ed

[Guest guest]

I feel the same way......tired of having to beg for any kind of help or advice.

Geri

[Guest guest]

A buncha fine answers already but it's difficult to say anything for

certain without knowing all the facts and circumstances of your son's

situation. But please though, don't share them with us.

To recap what I see:

SS Disability may or may not be taxable, depending on your son's

other income.

There is nothing that forces two taxpayers to file jointly. What

your son's wife did is not illegal from an income tax standpoint

(based on the facts as you have presented) but it certainly may be

unethical. However, if he and his estranged wife can come to a

financial reconciliation, it may be advisable to file an amended

return (1040X) for TY2008, change the filing status to MFJ, add his

income, etc. It's messy but doable.

It is generally financially advantageous for even an estranged couple

to file jointly. Under Married Filing Separate, the tax tables are

less advantageous and many tax credits are not available.

You said that you son's wife filed MFS and received thousands of

dollars. That sounds somewhat suspicious. I wonder if she filed as

Head of Household. From what you have said here, it does not appear

that she qualifies as HoH status and therefore her return would be

FRAUDULENT.

Generally, the dependency exemption for children goes to the

custodial parent.

Do your son and his wife live in a community property state? If so,

each would normally claim half the income of the other, half the

deductions, etc.

In other words, there're a few too many unanswered questions and

these questions and the answers are a bit too complex to answer on

this forum. I suggest your son either visit a tax pro or a VITA

center, if he qualifies.

[Guest guest]

Augold,

Well, I agree with you in principal, but id say Bill Gates gets

disabled should he no longer have to pay taxes? Maybe additional

deductions like they allow for visually impaired would be nice since

many of us spend money on things others can do for themselves.

If they pass a bill for handicap accessibility, can you see that they

make it retroactive? I just spent a lot more than I liked to have a

new house made handicap accessible.

[Guest guest]

Yes, I believe Indiana is a comunity property state.

What is a VITA center?

[Guest guest]

Donna,

The renters deduction is something we call Property Tax Credit (PTC) in MO. He

is entitled to it if he has the landlords name, ss#, address and the amount HE

paid. She might try to claim it too. The State will decide who is entitled to

it. They can file Married Filing Separately (MFS) and there will be a tie

breaker rule given, meaning the one with the highest AGI will get to claim

the kids, which makes one of them SOL. Have him to try to convince his wife to

file Married Filing Joint (MFJ) and split the check when they get it. Hopefully

they can afford a divorce this year and not have to go through it again next

year.  I still see people doing MFJ now even tho their separated, its between

the man and the woman of how they want the money.

 

Good Luck,

Debbie

[Guest guest]

Here is a link about VITA

http://www.irs.gov/individuals/article/0,,id=107626,00.html