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ABC Accounting Group
ABC Accounting Group, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 664
Experience:  Business Consultant/Accounting Manager
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Same question. Working on Offer in Compromise. Is VA

Customer Question

Same question. Working on Offer in Compromise. Is VA disability included in income, and would the back pay from VA disability be consiered income?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: That is it. We also owe state taxes.
JA: Is there anything else important you think the Accountant should know?
Customer: No that is it, just hose questions.
Submitted: 9 months ago.
Category: Tax
Expert:  ABC Accounting Group replied 9 months ago.

Hi. Great Question. You do not pay income tax on disability benefits you receive from the VA.

Expert:  ABC Accounting Group replied 9 months ago.

If you have any questions, let me know. If not, a positive rating is very much appreciated. Best Regards.

Customer: replied 9 months ago.
to be specific, if I am adding monthly assets/payment with the Offer in compromise booklet, then, I DO NOT include VA disability?
Expert:  ABC Accounting Group replied 9 months ago.

Hi. I misunderstood - I thought you meant if it is taxable or not. You include the monthly VA benefits (compensation and/or pension) in Section II, Block 16, “Pension, Compensation, or Other Income.”

Expert:  ABC Accounting Group replied 9 months ago.

If this is not answering your question, let me know and do not rate. I will opt out, if this does not answer it. Thank you.