Filing Income Tax

[can'tgetenufofwdw]

My husband is disabled at 52. He collects workers comp, social security disability and a retirement disability from New York State. I'm not sure if I need to claim any of that income when I file or not. Anyone have experience with this?

 

[disneychrista]

My husband is disabled at 52. He collects workers comp, social security disability and a retirement disability from New York State. I'm not sure if I need to claim any of that income when I file or not. Anyone have experience with this?

You will get 1099's for all income that needs be claimed.

 

[AnnaS]

Of course check with an accountant but I don't think Workers Comp is claimed - but he might get taxed on SS disability.

I found this - https://thedisabilityguys.com/workers-compensation/faq/are-workers-comp-benefits-taxable/

 

[can'tgetenufofwdw]

You will get 1099's for all income that needs be claimed.

Thank you. He did get a 1099 from Social Security. Nothing yet from NYS retirement though, at least not yet. I've always done our taxes because they are pretty easy but now that his disability retirement has been approved (July 2021) I don't want to do something wrong and screw it up.

 

[barkley]

talk to a tax expert in your state-dh and i collectively have 4 different sources of disability income and some are taxable, some are not, some we receive 1099's on, some we do not. with social security it depends, in part, on the types and total amount of other sources of 'countable' income as to if the social security hits a taxable threshold. also with civil service disability pension there can be ENTIRELY specific tax laws (esp. if it's a service connected disability in which case some is entirely tax free). if your dh just started getting social security disability in 2021 and got a lump sum going back for prior years there are also ways for a cpa to look and see if your prior year's returns (for the years the lump sum covered had it been paid timely) should be amended to spread out the lump sum and avoid a big tax hit (this saved us immensely).

it is such a specific type of tax law that it's well worth it to have a trained professional do it for at least the first year or two (not the h&r block tables at the superstores).

 

[AnnaS]

Curious about any update if you do have to file. We are now both retired - so just curious if laws have changed. TIA.

 

[fla4fun]

it is such a specific type of tax law that it's well worth it to have a trained professional do it for at least the first year or two (not the h&r block tables at the superstores).

I agree. I remember my mom doing the taxes every year except two, and one of those was when my dad retired. She said the peace of mind, and the fact that they were there if anything went wrong more than made up for the cost (which I don’t recall was too prohibitive).

edit - FYI, with all the talk about delayed refunds, I filed last weekend. Granted, I have a simple return, no itemizing or anything, but I was stunned to see my refund hit my bank account today (1/28). I definitely recommend filing as early as you can, doing it electronically, and direct deposit for the refund. I am still unemployed and was very happy to get the money so quickly.

 

[can'tgetenufofwdw]

Curious about any update if you do have to file. We are now both retired - so just curious if laws have changed. TIA.

We spoke to a CPA yesterday and she will do our taxes. She said my husband should be getting something from retirement and as soon as he does we will drop off our papers.

 

[LuvOrlando]

I am in the middle of the application process for SSDI with an attorney now helping & we have a CPA but I can't get a straight answer out of anyone regarding income thresholds and how 529 withdrawals are handled so I am just going really low and waiting to see how it plays out after April. I have never regretted anything more than putting money in that account. I can't sort out where it lands and no-one will advise, whats up with this i don't know. So now I only pulled 9k unqualified to cover some expenses that could really be qualified in case there is a snafu. I know that this much at least is allowed for being earned as under the meaningful line. I read and read and have never come across anything so muddy in all my life. Used to wonder how disabled people could ever end up homeless and on the street when there is SSDI and now,considering I haven't worked for income since 2019 with records going back ages, I completely 100% understand how this happens. Just not what I thought it was at all.

 

[_19disnA]

Popular computer software from HR Block or Turbo Tax are very easy to use and guide you through the process of what to include/exclude when filling out your taxes. Unless you sold a business or have excessively complicated tax situations, these can save you the cost of using an outside expert to complete your taxes.