Answer

Let estimate your 2009 taxable income.

So far following will be included into your gross income:

$1659 in wages

$1700 distribution from an IRA - as you are disabled - no penalty for the distribution.

$6704 distribution from an insurance annuity - it might be not fully taxable - you should recover tax free the cost your paid into the annuity.

Your total taxable income besides SSD benefits -

$1659 + $1700 + $6704 = $10063

To determine if any of your social security disability benefits are taxable - here is the test: $10063 (your other taxable income) plus $14408/2 (half of your SSD benefits) = $17267 - and because that amount is less than $25,000 (for singles) - none of your SSD benefits are taxable.

 

So your estimated taxable income will be $10063

standard deduction for 2009 - $5700

personal exemption $3650

taxable income $713

estimated tax liability $71

 

Please verify if you received from SSA $250 rebate ? If not - you may claim additional Making Work Pay credit.

 

With $3000 in medical expenses - your itemized deduction will be less than the standard deduction for 2009 - $5700 - but if you have any other expenses to include - property or real estate taxes, charitable contributions, mortgage interest etc - you may save up to $71

Let me know if you need any help.