Submitted By: someone
Answered: November 28, 2022 9:29 pm

Does a 100% disabled veteran need to worry about taxes this year?

A disabled veteran may be entitled to tax-free disability income from the federal government. However, other government benefits, as well as other sources of income, may push the veteran over the threshold for filing a return. This means a return must be filed, even if no taxes are owed. What’s more, even if the veteran is below the filing threshold, there are situations in which a return must be filed nonetheless, such as if the homebuyer credit was claimed in 2008, subject to a 15-year repayment period, so that part must be repaid this year.

Tax Glossary

Foreign earned income exclusion

In 2007, up to $85,700 of foreign earned income is exempt from tax if a foreign residence or physical presence test is met.

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