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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I receive social security disability around 9,000 a year im

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I receive social security disability around 9,000 a year im single. I also have a lifetime tax free structured settlement/annuity. do I have to file taxes? I was told that my annuity was not considered income and did not have to file

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

What is your structured settlement for? Was it for physical injuries?

MyVirtualCPA :

If the settlement is tax free, and you only make $9,000 off your disability and that's your only income, then you will not have to file a tax return

MyVirtualCPA :

You can follow up with more details of your settlement, if you would like

MyVirtualCPA :

Do you have further questions? If not, please rate my response as "excellent" so that I may receive credit for assisting you today.

Customer:

yes it was for physical injuries from a auto accident it was set up by my attorney for a lifetime annuity and is tax free.and I receive about 9,000 a year from disability. I have no other income

MyVirtualCPA :

Then, no - this is not a taxable settlement and there is no requirement to file an income tax return

Customer:

thankyou very much. so if someone asks for my last three year tax forms I can tell them I don't have to file taxes due to ssd and tax free non-reportable tax free annuity right ?

MyVirtualCPA :

Yes, that would be correct.

MyVirtualCPA :

If you would, please rate my response "excellent" as that is how I receive credit for assisting you todya

Customer:

yes I will thank you again

MyVirtualCPA :

You're welcome. Have a great day.

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