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I have searched all over, called the SSA and the IRS and I still have no definitive answer to my question regarding SS Retirement taxation, I'm hoping someone can help clarify for me.  My simple question is...is SS Retirement (early at 62) taxed if I get VA disability compensation?  I'm 100% Disabled and decided to take early retirement at 62, my next birthday, but I have read conflicting information about an income cap and SS taxation. I thought, as well as read, that SS-retirement, has no "means test" as does SSI & SSDI and is not subject to taxation because it is drawn from a different fund.  Also, is VA disability compensation counted as "income" for such a tax parameter as an income cap?  Is VA compensation considered as income?  Could someone please answer this for me or direct me to a source that I can get a definitive answer?  Please don't refer me to SSA or IRS, as I have spent a LOT of time reading their guidelines and trying to get an answer over the phone...I have called each agency 4 times now and keep being referred to the other agency.   Thank you and I appreciate any info I can get on this subject. 

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Answers

A1:  The reason the IRS can't give you definite answer is there are to many variables. Do you have interest income, other retirement income, 401K income, plus SS added together give you adjusted income minus deductions give you taxable income. VA disability IS NOT TAXABLE, so don't report that on any tax returns Federal or State.  (GR)  5/2/19

A2:  As it was explained to me, any disability payment is non-taxable. My late husband received SSDI and VA disability, and neither were taxable. When he passed away from ALS, our Ssi became combined and what I received from his SSDI was non taxable but my SSI IS...however my DIC from him is still non taxable. Hope this helps!  (MG)  5/2/19

A3:  No. VA compensation is not considered income. It's none taxable. SSDI is taxable if you make more than a certain amount a year. If your under I think 25000 a yr it's not taxable either. Contact a tax preparer for more claification.  (MF)  5/2/19

A4:  VA compensation can never be taxed by the federal or state government as it is NOT considered income. SSDI and SSI are taxed by the federal government and some states. In most cases, if this is your only "income" - you will likely get a refund on any taxes paid. Hope this helps and as always, I recommend consulting an attorney or CPA.  (MS)  5/2/19

A5:  Your VA compensation is NOT taxable and should not even be reported on your tax forms. Your SSA benefits are taxable, but only on part of it and then at a lower rate than normal income. It should be reported on your 1040.  (MB)  5/2/19

A6:  My 70% VA is tax free but my SS is.  (RB)  5/2/19

A7:  I filed and my va disability is not counted as I'm also 100 percent but the ssdi what I get is only counted for the medical payments that are taken out automatically. Income is not reported so only my wife had actual income. I hope that helps some,  (JA)  5/2/19

A8:  Best way I found was to use a tax return form in book & do the figures ! Had 1 yr when part of SS caused me to pay some because of part-time income. VA disability is not counted tho.  (SD)  5/2/19

A9:  VA disability benefits are not taxable as they do not you a 1099.

SS can be taxable. It all depends on any other taxable income that you also receive or earn. The combined amount will be taxed if it is above a certain amount minus deductions and exemptions.

Your tax return can help you determine if any amount is taxable. The tax return form can show you what income or benefits (such as SS) to include on the return.  (LK)  5/2/19

A10:  My tax guy advised me - if you don't receive a W2 then it's not income.  (DB)  5/2/19

A11:  Your S/S Payment and VA Disability are not taxable. I get both and USAF Retirement pay which is taxable. You would have to check your state tax rules cause each state is different.  (SK)  5/2/19

A12:  An SSA-1099 is a tax form we mail each year in January to people who receive Social Security benefits. It shows the total amount of benefits you received from Social Security in the previous year so you know how much Social Security income to report to IRS on your tax return.  (NA)  5/2/19

A13:  VA Disability in not taxable. Social Security retirement payments are taxable, because they were taken out of your previous employment as "pretax deductions". I do draw VA disability and SS(also started at age 62).  (BH)  5/2/19

A14:  There is a Social Security Benefits Worksheet on irs.gov 1040 instructions that will walk you through to see if any of your ssa is taxable. If you have no other household income, then it's safe to say it won't be taxable.  (TB)  5/2/19

A15:  SS is taxed and your VA Disability is not considered income towards your SS. The SSA will take out a minimum of 20% when you file your for SS Retirement. I receive only 10% Disability from the VA and I'm getting SS Retirement.  (NU)  5/2/19

A16:  VA Compensation is "NOT" taxed. Not required to report this as income...FACT!   (TW)  5/2/19

A17:  I too am a 100% Disabled Veteran. In NM at least, my Disability Income is non-taxable. I took early SSA at 62. They set a maximum you can earn from a job, and after that amount is reached each month, you are charged a penalty for each dollar over the SSA amount. It was so long ago I do not remember the exact $$, but SSA website should have the current amounts you cannot surpass.   (GR)  5/2/19

A18:  I'm hoping I've been doing it right. My case is like yours: I started SS at 62, and get VA disability compensation at 100% (60% rating, but unemployability). SS is taxed based on overall income; VA disability isn't entered on the 1040 at all, and has nothing to do with SS income/taxation.  (EL)  5/2/19

A19:  Contact your Congressman for help and he will get in contact with the VA. Then and or Social Security and they will most likely be back in contact with you. It will be a higher up person and not the red tape lower persons feed you. They will do what they can to get the Congressman off their backs. Has always worked for me.First did you work in a job long enough to qualify for social security and if your over 65 may not get it. If your disabled and over 65 the answer I got was that I would not be eligible due to my age. Figures doesn't it if your lower income and older they cut you off but give it to someone younger that never even worked the required quarters but that is the screwed up system we have paid into. I used to have $2,400 in my social security and can not get it for 100 percent disabled and unable to work and now my social security has went down to $1,700. So who are they giving it too and that is the prior mentioned individuals. I hope your under 65 in age and then you have a chance. I wish I could for I expect when I turn 70 then I will lose half my VA disability due to me being unemployable and I thought that was what unemployability was for. But guess you get older and they consider you unemployable they take it away and half of your disability with it. Doesn't mean I may not sue the VA for I have enough conditions all service related that the VA with the Media's help will want to settle out of court for a large chunk and then refuse me VA services and disability thru them Just figures doesn't it that you serve your country and then stabbed in the back by the country you served. Best of Luck and hope you get it.  (JRM)  5/2/19

A20:  I have read in books in the library and I don't know what book it was but I had a question about if I paid taxes on the compensation.Well, it turned out that it said you don't even have to put it on your tax 1040 form at all. When it comes to your S.S. It will always be considered income and always will have to be reported but if you don't make enough why worry you are allow what 4,000 or more deductible on your income tax. Whatever your S.S.that is always considered your income which you would add to other working income and those two will only be your income. The working income and the S.S. I hope this will somehow help me. If you go to the library look for books written by Tax people.  (JH)  5/2/19

A21:  Only part of your ss is taxable. I get ss(max) and 60% va 'va not part of income.  (LB)  5/2/19

A22:  I can only tell you my personal experience. You should talk to a tax preparer for your personal situation. I take SS and get my VA disability. My VA payment is not taxed. But because I'm still working part time and my younger spouse is working, I'm over the income cap for SS to be taxed, since she's not over 65 (?). But my VA is not taxed, at this time.  (PF)  5/2/19

A23:  The rules and regulations for what is income and what of it is taxable is governed by IRS. Do some surfing n irs.gov and I'm sure you'll find the answer. Or, talk to a competent tax preparer who deals in tax service and not just tax preparation for a fee or a promise of huge refund. The hardest part is accepting the results. The formula for calculating the proper taxable amount, if any, is well defined by IRS and is not flexible.  (GC)  5/2/19

A24:  With 100% Service Connection, you should be eligible for SS Disability which pays you a HIGHER rate & you would not pay taxes on it until you hit your full retirement age-but even then you would STILL KEEP THE HIGHER SS MONTHLY RATE FOR THE REST OF YOUR LIFE. FYI: VA/SS regularly share files.  (KF)  5/2/19

A25:  If you're rated 100% by VA you should apply for SSDI insted of SS retirement. You'll get the full rate instead of the lower early SS retirement rate. It means about 30% more per month and you can still apply for it. SS is taxable if you go over the income allowed rate. VA is not taxable.  (RH)  5/2/19

A26: No SSA is not taxed when you get VA disability is not counted as income.  So you don't have to file a tax return because you have no earned income.  (TO)  5/3/19

A27:  VA DISABILITY IS NOT CONSIDERED INCOME.  SSA/SSI/SSDI ARE ALL TAXABLE INCOME  I've been filing taxes since 2005. This is how it goes.  (MS)  5/3/19


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