Disability Is it taxable

Disability  question for radio show 

Ask DrFriday -These questions on disability were ask on the Dr Friday Radio 

Show on 99.7 WWTN at 2:00 central time or listen on iheart radio.

Disability payments are they taxable or not?

It can get very confusing when it comes to disability and taxes so I have answered a few of your questions hoping this will make it easier for you to file your taxes or not!

Social Security Disability benefits can be non- taxable, if the following is true for you.

As of 2012, your Social Security benefits are not taxable if the annual income you receives are lower than $25,000 (for a single person) or $32,000 (for a married person). To calculate whether your benefits are taxable or not, you must take into account your yearly earned and unearned income. Your earned income includes income you receive for services you provided, your job-related income and self-employment income. Unearned income includes all the benefits you get, such as Social Security benefits, veteran benefits and state benefits, plus insurance payments you have, alimony and dividends or shareholder payments. If all these payments together do not exceed the limits mentioned above, your Social Security benefits are not taxable income.

Is Veterans  Disability benefits taxable?

Disability Compensation is a tax free monetary benefit paid to Veterans with disabilities that are the result of a disease or injury incurred or aggravated during active military service. Compensation may also be paid for post-service disabilities that are considered related or secondary to disabilities occurring in service and for disabilities presumed to be related to circumstances of military service, even though they may arise after service. Generally, the degrees of disability specified are also designed to compensate for considerable loss of working time from exacerbations or illnesses.

Private Disability benefits paid for by the company you work for, is it taxable?

An employer provides short term and long term disability to all eligible employees, and provides them as an employee benefit without cost to the employees. Because the employer deducts such payments from its income as a business expense, any disability benefits received by disabled employees are fully income taxable.

Private Disability benefits paid for by you out of your own after tax money, is it taxable?

A person buys individual disability insurance from an insurance company. He/she pays the premiums with after-tax dollars, that is, the premiums are not deducted from taxable income as a business expense or otherwise. Because the premiums were included in taxable income, any benefits that person receives from the policy due to disability are not income taxable.

My child qualifies for Disability benefits, is it taxable? 

If your child earned income with a part-time job, then at least some of his SSI benefits may be subject to tax liability. This is also the case if during the year, your child received some other type of income, such as payments from a trust fund or an inheritance. How much of your child's SSI taxes are subject to a tax liability depends on how much the child earned through his other income sources.

If SSI was your child's sole source of income, he does not have to file a tax return and his benefits aren't taxed. This is generally true of most government benefits and entitlement programs: if they're the recipient's only income, then the recipient doesn't have to pay any taxes on them. 

Dr Friday an enrolled agent, president of Dr. Friday Tax and Financial Firm, Inc. to ask a question email Friday@DrFriday.com. 

Don't mess with the IRS!

Don't mess with the IRS  without an enrolled agent preparing

your taxes!

Why should a tax preparer need to be licensed?

Why not use your local  Plummer or do it yourself?

Do you go to a tax professional to get your pipes fixed?

I don't know what you do for a living but I'm tired of people acting like anyone can do taxes, they can't.The proof is all the people who owe the government 

taxes, penalties and interest. 

Now they are fighting a law which they say is unconstitutional to make a tax preparer have to be licensed. I am a  EA -Enrolled Agent, tested and

License by the IRS to do tax in any state in the United States.

Many EA's have taken the test and any third grader could pass it,

people wake up you need to go to a professional so you have the knowledge and continued eduction but you also have the assurance that the person completing your tax return is educated to do it. I know what you are going to say that an enroll agent charge to much -that is a lie most Tax Professional get you more back than they charge, legally by knowing the tax laws. Go to any of the big box tax places and ask them for their credentials and how much they charge before they do your taxes. Most EA's Will charge you less and they know all the tax law changes. Most EA's also are year around businesses so if something comes up with the IRS you can have it taken care, not speak to someone on a telephone that has know idea who you are or any idea about your tax situation. We need to clean up the tax business for it's wrong to have people do tax that are not educated in this field. You might think I am just writing this to sell myself but you would be wrong in all honesty I make a good living clean up after the mistake made by self prepared or unqualified preparers. I see know reason why if you are preparing taxes you would not have to test to qualify them as tax prepare. I have one more thing to say. Don't mess with the IRS without a EA prepared tax returns.

Dr. Friday an enrolled agent, president of Dr Friday Tax and Financial Firm, Inc email questions to Friday@DrFridy.com

Is my Disability taxable?

Ask DrFriday -These questions on disability were ask on the Dr Friday Radio 

Show on 99.7 WWTN at 2:00 central time or listen on iheart radio.

Disability payments are they taxable or not?

It can get very confusing when it comes to disability and taxes so I have answered a few of your questions hoping this will make it easier for you to file your taxes or not!

Social Security Disability benefits can be non- taxable, if the following is true for you.

As of 2012, your Social Security benefits are not taxable if the annual income you receives are lower than $25,000 (for a single person) or $32,000 (for a married person). To calculate whether your benefits are taxable or not, you must take into account your yearly earned and unearned income. Your earned income includes income you receive for services you provided, your job-related income and self-employment income. Unearned income includes all the benefits you get, such as Social Security benefits, veteran benefits and state benefits, plus insurance payments you have, alimony and dividends or shareholder payments. If all these payments together do not exceed the limits mentioned above, your Social Security benefits are not taxable income.

Is Veterans  Disability benefits taxable?

Disability Compensation is a tax free monetary benefit paid to Veterans with disabilities that are the result of a disease or injury incurred or aggravated during active military service. Compensation may also be paid for post-service disabilities that are considered related or secondary to disabilities occurring in service and for disabilities presumed to be related to circumstances of military service, even though they may arise after service. Generally, the degrees of disability specified are also designed to compensate for considerable loss of working time from exacerbations or illnesses.

Private Disability benefits paid for by the company you work for, is it taxable?

An employer provides short term and long term disability to all eligible employees, and provides them as an employee benefit without cost to the employees. Because the employer deducts such payments from its income as a business expense, any disability benefits received by disabled employees are fully income taxable.

Private Disability benefits paid for by you out of your own after tax money, is it taxable?

A person buys individual disability insurance from an insurance company. He/she pays the premiums with after-tax dollars, that is, the premiums are not deducted from taxable income as a business expense or otherwise. Because the premiums were included in taxable income, any benefits that person receives from the policy due to disability are not income taxable.

My child qualifies for Disability benefits, is it taxable? 

If your child earned income with a part-time job, then at least some of his SSI benefits may be subject to tax liability. This is also the case if during the year, your child received some other type of income, such as payments from a trust fund or an inheritance. How much of your child's SSI taxes are subject to a tax liability depends on how much the child earned through his other income sources.

If SSI was your child's sole source of income, he does not have to file a tax return and his benefits aren't taxed. This is generally true of most government benefits and entitlement programs: if they're the recipient's only income, then the recipient doesn't have to pay any taxes on them. 

Dr Friday an enrolled agent, president of Dr. Friday Tax and Financial Firm, Inc. to ask a question email Friday@DrFriday.com.