Can my dad expect a tax refund on Social Security/disability?
My dad had a stroke 2 years ago and finally got approved for disability last year. Now that it’s tax time, should he anticipate a refund when he files? No tax was withheld from his Social Security benefits, so it seems obvious he won’t get a refund. But the IRS calculator (“should I file a return?”) still indicates that he should file a return.
What about things like mortgage interest paid on his home, and his out of pocket medical costs–are they simply deductions he could take if he had paid taxes?
Thanks in advance…
Unless he had other taxable income, it is pointless taking deductions for medical and interest expenses, since there is no tax to refund.
According to the IRS:
You may qualify for a minimum payment of $300 ($600 if filing a joint return) if your tax return reflects $3,000 or more in qualifying income – which includes non-taxable Social Security disability.
BUT YOU MUST FILE TO RECEIVE THE REBATE, even if you are not required to do so.
See the sample Form 1040A at the link below:
http://www.irs.gov/pub/newsroom/1040a.pdf
Alternatively, the IRS has announced an electronic free file option for people who have no legal requirement to file a tax return but must file a return this year in order to receive a 2008 economic stimulus payment. Click on this link to file for your rebate electronically:
http://www.irs.gov/efile/lists/0,,id=179739,00.html
Premier Life Planning
Tags: calculator · money · mortgage · realestate · taxNo Comments
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.