I am a 100% disabled veteran. Does this count as disabled for tax reasons?

Forum|Forum|1 year ago
December 7, 2024
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80 years old

DoninGA

Employee

There is not a tax credit for being disabled on a federal tax return. You do not report your VA disability payments on a tax return.

xmasbaby0

Employee

For disabled adults:

There is an extra amount added to your standard deduction if you are legally blind. Your federal return does not provide any other credits or deductions for saying you are disabled, with one possible exception.

There is a credit for the Elderly and Disabled which is so small that very few people benefit from it—-it has not been updated/increased by Congress for decades.

ELDERLY OR DISABLED CREDIT https://www.irs.gov/help/ita/do-i-qualify-for-the-credit-for-the-elderly-or-disabled

There are some states that provide various credits to elderly/disabled folks, so watch for that when you prepare your state return. The states that I know of that have anything for elderly/disabled are AZ, CT, DE, IA, MO, ND, NJ, NY, VE. There may be others.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Opus 17

Employee

For IRS purposes, "disabled" means unable to perform gainful work, due to a condition that is permanent, or will last at least one year, or will lead to death. Because the focus is on the ability to work, many people with medically recognized disabilities are not considered disabled on their tax return.

In any case, there are no additional tax benefits you can claim for being disabled. It affects a few things if you care for someone else who is disabled, and it changes the treatment of your pension if you leave work on disability before full retirement age. But there is nothing extra that will happen if you do or don't check the disabled box at your age. If you receive disability payments, they either are or aren't taxable, depending on who pays, and your other income, and that calculation is not affected by checking the box.