May 27, 2008 • June Walbert
Q: Are Social Security and VA pension considered income when filing my income tax return?
- Craig, Woodson Terrace, MO
A: Thanks for your question and your service!
Unfortunately, it can be hard to escape the long arms of the taxman!
A portion of your Social Security may be included as income when you
file your tax return. Here is how it works: if your income, including
one half of your social security and tax-exempt interest from bonds, is
less than $25,000 ($32,000 if married filing jointly), your social
security will not be included as income and taxed. If your income is
between $25,000 ($32,000 MFJ) and $34,000 ($44,000 MFJ), 50% of your
Social Security is included as income and taxed. Finally, if your
income including half your Social Security is greater than $34,000
($44,000 MFJ) 85% of your Social Security will be included in income.
Whew!
On the other hand, disability or compensation received due to
disability received from the Veteran's Administration is typically not
included in income or taxed. I hope you find this information helpful.
If you have additional questions, please visit www.irs.gov.
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I am currently receiving a not connected VA disability pension. I recently was awarded Social Security disability.Will the VA count my SS backpay against my VA pension?
Posted by: Robert M Ryder | March 29, 2009 at 08:53 PM
I live in subsdidized housing and they require info about my income every year to keep my qualification current. I am also a disabled vet and my pension is not included in my IRS tax return. Am I obliged by law to incluide my VA pension in my reported income to the rent subsidy people?
Noprman Duncan
Posted by: Norman Duncan | January 11, 2009 at 12:46 PM
where do i put my husbands income if he recieves tax free veterance disability compensation benefits. Do i put it on line 8b where it says tax-exempt interest or leave it off.
Posted by: cindy | January 05, 2009 at 09:20 AM
On this subject of income (VA and Social Security)The United States code and laws state that no portion of your VA disability is required to be reported to any government agency. Why does many states require veterans to report VA disabilty?
Posted by: jack shuman | June 01, 2008 at 08:20 AM
VA Disability is different from VA Pension. I am a VA Pensioner and I can tell you this about that: Caveat Emptor: The VA does computer matching and if you "work" and pay Social Security, Income Tax etc; then, if you are a "VA Pension reciepent; then, you are in a bad position because the pension is awarded due to not being able to maintain employment or be employable due to non-service-connected disability(ies) and although the "Pension is non-taxable" according to the Dept. of VA, you are not allowed to receive the VA Pension and earn any income.
Posted by: Ed | May 30, 2008 at 08:32 PM
VA Disability is different from VA Pension. I am a VA Pensioner and I can tell you this about that: Caveat Emptor: The VA does computer matching and if you "work" and pay Social Security, Income Tax etc; then, if you are a "VA Pension reciepent; then, you are in a bad position because the pension is awarded due to not being able to maintain employment or be employable due to non-service-connected disability(ies) and although the "Pension is non-taxable" according to the Dept. of VA, you are not allowed to receive the VA Pension and earn any income.
Posted by: Ed | May 30, 2008 at 08:29 PM
Social Security Disability can be Taxed If Your Wife Works Makes More Than you do Because When I got My SSD and SSI and NON Taxable It Stated in my Letter Being Total n Permanantly Disabled though the VA Admin and you all also so I also Checked it out on your WebSite and It Stated it too thanks
Posted by: David | May 30, 2008 at 02:33 PM