Can anyone tell me about social security disability benefits and income tax?
October 4th, 2009 | by admin |
amoroushotmama asked:
My friend has been on disability since 2001 and has not filed income tax. He only gets about $14,000 a year. Now the IRS and state are taking over $3000 from him. Is this right?
Jeffery
My friend has been on disability since 2001 and has not filed income tax. He only gets about $14,000 a year. Now the IRS and state are taking over $3000 from him. Is this right?
Jeffery
No Responses to “Can anyone tell me about social security disability benefits and income tax?”
By bostonianinmo on Oct 7, 2009 | Reply
If the SSD is his ONLY income, it is not taxable. The IRS knows this so if they are claiming that he owes tax from one or more of those years they must have evidence that he had other taxable income.
If they are attaching his SSD payments then there may have been an old tax debt that went unpaid and they are going after his SSD to cover that. That is perfectly legal and is common practice.
By ninasgramma on Oct 10, 2009 | Reply
It is almost certainly correct. A taxpayer receives ample notice before income such as wages or Social Security is garnished.
What other income does this person have? He may owe taxes on that income, as well as taxes on his Social Security. Or, he may have tax debts prior to 2001.