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Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience:  15+ years tax preparation and tax advice.
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I have been collecting Social Security Disability & was told

Resolved Question:

I have been collecting Social Security Disability & was told I did not have to file taxes last year, however, I had refinanced my mortgage with a 30 yr. 10 yr. int. only & am paying over 10 thousand a year in interest aside from medical deductions I would have. I have also started recieving benefits from my former employers ins. which are taxable in oct 2008 & will continue to recieve them till I am 65. I was counting on the returns to pay off principal before the 10 years is up so my mortgage wont balloon beeyond my ability to pay it. can I file & expect a return?
Submitted: 8 years ago.
Category: Tax
Expert:  Wendy Reed replied 8 years ago.

Hello there,


Unfortunately, you were misinformed about filing in 2007. You were not required to file, but you did need to file a return to get the stimulus rebate. However, you may still get the stimulus in the form of a credit on your 2008 return.


Whether or not you will receive a refund depends on many factors, including whether or not you have tax withheld from your taxable income.


A mortgage company is not qualified to give tax advice, and the fact that they "assured you" that you would get refunds is an abusive and unethical business practice.


If you receive taxable insurance benefits with no withholding, and receive SSD, it is unlikely that you will receive a refund, no matter how much mortgage interest that you pay. This is because you need to have tax withheld from income in order to get a refund. The exception to this is Earned income credit, which you will not get unless you have earned income (salary, compensation, etc).


If you give me more information about the amount of your SSD, the amount of your taxable insurance benefits (including withholding if any), and any other income or important information (such as other deductions, dependents, etc) then I could provide an estimate for you. Also, if you are married and file jointly, I would need spouse's info.


Please let me know what else I can assist you with.

Wendy Reed and 2 other Tax Specialists are ready to help you