Income Tax - Disabled On SS & Workers Comp & Pension?

Question

I am 60 years old and am disabled.

There are a few different questions here Please answer them ALL

I get SSDI, Workers Comp and will start to get a small pension ( $81.00 ) in Dec

I am told the pension is taxable,

But that is less than $1000.00 per year

Do I have to file a return for that amount ????

Are there limits to any other additonal income I may get ( like lottery winnings - I won $2700.00 in May ) ( like must get over $5,000.00 to file taxes ).

OR do I add the extra income ( the Pension and lottery - then subtract my individual deduction and pay taxes on the remaining.

I have been searching the net and CAN NOT find the asnswers
and do not have a lot of extra money to be using an accountant.

I get just over $12,000.00 from SSDI & Worker Comp.

So my income is around 13000.00 with the pension

I think my individual deduction is $3500.00

RH

Answer 1

You're OK for 2007, even with the lottery win. Workers comp isn't taxable. SSDI can be partially taxable depending on your other income, but you don't have enough for it to be taxable. The only taxable items you'd have for 2007 is the $81 for December for your pension, and the $2700 lottery win. You get a standard deduction of $5350 and a personal exemption of $3400 for 2007 (numbers usually go up a little each year). Since your taxable items total less than that $8750, you don't have to file a return, and don't have to pay any federal income taxes.

For next year, unless you have another lottery win or some other type of taxable income that takes you over next year's limit to have to file, you'll be OK then too. The pension is a taxable item, but isn't enough for you to have to pay tax on unless you have more other income than you have. And it's FAR below the amount that would cause part of your ss to be taxed.

I am assuming here that you are single. If you are married and filing a joint return, and your spouse has any income, the answer may be very different from the above.

Answer 2

Judy's answer was spot on. If you have more questions I would go to IRS web site and look at PUB 17 under who should file that is a very good start. Or try your local HR Block they can look at everything for you and tell you.

Answer 3

The pension is taxable but the rest is not. Tax on $81 per month is zero.

Answer 4

I dont know about that but I would contact the IRS and tell them your dilema......their web site has lots of info too