Submitted By: someone
Answered: November 28, 2022 9:29 pm

Does a 100% disabled veteran need to worry about taxes this year?

A disabled veteran may be entitled to tax-free disability income from the federal government. However, other government benefits, as well as other sources of income, may push the veteran over the threshold for filing a return. This means a return must be filed, even if no taxes are owed. What’s more, even if the veteran is below the filing threshold, there are situations in which a return must be filed nonetheless, such as if the homebuyer credit was claimed in 2008, subject to a 15-year repayment period, so that part must be repaid this year.

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Tax Glossary

Flexible spending arrangement

A salary reduction plan that allows employees to pay for enhanced medical coverage or dependent care expenses on a tax-free basis.

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