Does a retired person have to file federal & state taxes with SSA, VA pension, & VA Korean pension?

tigerjewel28
tigerjewel28 Member Posts: 6 Newcomer
in Retirement Income

As a retired person, I receive social security, and 2 VA pensions. I was in the service for 8 years & in the Korean war? Are veterans taxes on their pensions?

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  • AleceN
    AleceN FreeTaxUSA Agent Posts: 19
    Answer ✓

    Sounds good! If he finds he needs to file prior year returns, he can do so on our software. He can file back 7 years. We look forward to assisting you further if needed. Have a nice day!

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Answers

  • MeganC
    MeganC FreeTaxUSA Agent Posts: 9

    Hi Tigerjewel28,

    VA pensions are generally not taxable. This includes VA disability benefits, pensions for low-income wartime veterans, and other payments made under laws administered by the Department of Veterans Affairs. However, it’s important to differentiate these benefits from other types of retirement income, such as military retirement pay, which is taxable unless excluded under specific provisions.

    For additional details, IRS Publication 525 is a helpful resource. https://www.irs.gov/forms-pubs/about-publication-525

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  • tigerjewel28
    tigerjewel28 Member Posts: 6 Newcomer

    Thank you for answering the questions about the veteran retirement pensions. It must be if the veteran received a Form 1099-R from the VA Pension as to when he would have to file taxes. That is my next thing I have to find out about this veteran. I have known him for a number of years but just found out that he has not done taxes for a long period & do not know if he received any Form 1099-R. He may be in the know about his situation but he may have forgotten too. He should be getting any Forms 1099-R that are taxable in the next few months, & then he & I will know if he is in a "pickle" or not. Thank you! 🙃

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  • tigerjewel28
    tigerjewel28 Member Posts: 6 Newcomer

    Change filing status from single to head of household. I know to do this is not hard but my situation would be totally different. I am retired & my daughter is my paid care provider. However, because she lives with me, her income is not taxed. Can I claim her? Without her assistance in the finance situation, I would not be able to make the mortgage payment on my own, but I should be able to claim Schedule A deductions as the mortgage is for a number more years. She pays a portion & I pay a portion of the mortgage. What is correct with IRS?

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  • TheDan
    TheDan Member Posts: 3 Newcomer
    https://community.freetaxusa.com/discussion/comment/3715#Comment_3715

    Thank you for assisting a vet. This link to MOAA may provide additional help if you need it.

    https://www.moaa.org/content/publications-and-media/news-articles/2024-news-articles/finance/where-servicemembers,-veterans-can-get-free-tax-prep-help/

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  • tigerjewel28
    tigerjewel28 Member Posts: 6 Newcomer

    I appreciate this last answer to the veteran questions, but I will have to see if the veteran had a Form 1099-R before any other questions can be answered. Thank you.

    I had another question to answer. It was about changing filing status. It is above the answer from TheDan. It will help to hear about that question. Thank you.

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  • PhillipB
    PhillipB FreeTaxUSA Team Posts: 69

    I would like to clarify about whether VA pensions are taxable or not. The other agent who commented before is correct in that certain VA disability pensions are not taxable or reported on a tax return, but most VA pensions (especially if the pension is based on years of service and not on disability) are fully taxable. You're also right that if you receive a 1099-R, that is a good sign that your VA pension is taxable. See Military and Government Pensions here.

    In regard to the filing status, you can claim an adult child as a dependent and the head of household filing status if the following applies:

    1. Your adult child earned less than 4,700 dollars. This income figure generally only includes taxable income. For example, if she is on social security and that is her only income she would have zero income for this test.
    2. You provided more than half of her financial support for the year.
    3. (This is only a requirement for using the head of household filing status) More than half of the cost of the upkeep of the home where you and your daughter live. This includes any nontaxable income provided to you by your daughter.

    Let us know if there are additional questions or concerns.

    Thanks for using FreeTaxUSA Community

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