Can you file disabled on your taxes if you've been turned down by SS but the state approved you?

Question

I have a friend who receives disability from the State of Mi. and was turned down by SS. He hired a lawyer and is contesting their ruling. Can he still file disabled on his taxes?

Answer 1

You file as "Single, Head of Household, etc." not "Disabled". Disabled is not a filing status. There are things you can claim for a disabled child, but I don't know of any tax benefits when the person filing is disabled other than pulling money out of a retirement plan without paying the additional 10% tax. The IRS's definition of disabled is as follows:

Permanent and total disability: You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death.

Physician's statement: If you are under age 65, you must have your physician complete a statement certifying that you were permanently and totally disabled on the date you retired. You do not have to file this statement with your Form 1040 or, but you must keep it for your records.

Answer 2

There's no "disabled" filing status. The state disability payments are not taxable so it's really a moot point.