Pensions Military Retirement - Living in the Philippines

I am have probably bumped up my monthly from p40k to p50k which includes everything. Big ticket items are p18k rent, p4k utilities and the bump is from p5,500/mo XRM125 bike rental (buying in a week or so) and I am not as single as I was when I got here. (shhhhh lol)

 

Roger that, VA disability is not income and is not reportable to the IRS.

 

Yep. For IRS tax return purposes, I have found the following:

VA disability compensation is non-reportable -- you do not claim this as reportable income on your IRS tax return.

Post 9/11 GI Bill Stipend money is considered non-reportable for IRS tax purposes -- you do not claim this as reportable income on your IRS tax return. I have not used my Post 9/11 GI Bill, but my Son has, and he told me not to add this as reportable/taxable income on my IRS tax return.

30% of my military retirement IS reportable as Federal taxable income as the Army awarded me 70% disability, which placed 70% of my military retirement in a non-taxable/non-reportable status for IRS tax return purposes. 30% is reportable as taxable.

Since my husband died from injuries sustained in an "on the job" accident, my widow's pension is non-taxable/non-reportable for IRS tax purposes.

I hope by this years end, that all my income will fall under non-reportable/non-taxable for IRS tax return purposes. I will be ever so happy to catch this break if the CRSC decision-makers rule in my favor.

This is one reason I will be maintaining Oregon residency while I am in the Philippines (though this may soon change to establishing Texas residency before I leave). I will eventually not have to file Federal or State income tax returns (I hope) as it might happen that all my income will fall into the non-reportable, non-taxable Federal income thresholds. 45 years of paying income tax will be enough for me, so I will be pleased to catch this break (if CRSC happens).

States Without Personal Income Tax For 2016
Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not have a personal income tax. Two others, New Hampshire and Tennessee, tax only dividend and interest income.

*** It is worth noting that TEXAS can also offer a ZERO property tax benefit to a 100% VA rated Veteran for their personal/primary residence in TEXAS. This is WHY I will be eventually be building a small home in TEXAS. ZERO property tax for me in Texas where I will be able to grow old, be able to "age in place", and not worry about getting taxed out of my home.

A disabled veteran in Texas may receive a property tax exemption of up to $12,000 on his/her primary residence, depending on the severity of the disability incurred as a result of service. A full property tax exemption is available for veterans who are 100 percent VA disabled as a result of service.

**** This Texas property tax break is NOT income qualifying. In other words, while some States do offer property tax breaks to only certain types of Vets with only certain types of disabilities, many of these State property tax breaks are offered to these certain types of Vets if they are "low income". As of this date, TEXAS does NOT have "low income" qualifying prerequisites, nor do they offer this to only certain types of Vet with only certain types of dsabilities. Texas simply has a limit as to how much property tax they forgive/exempt every year - and that is a maximum of 12,000 USD annual property tax exemption for a 100% VA rated Veteran's personal/primary residence - and exemption is based on your VA letter of disability percentage - nothing more.

So since I'm NOT going to build a "McMansion", my primary Texas residence should easily fall into the maximum annual property tax exemption rates. For further information, see website below:

100 Percent Disabled Veterans FAQ

**********

I know this above written material doesn't have anything to do with income taxation, but this info may come in handy for those Vets in the PI (regardless of age) who may want to keep a small place in the States -- and this info might become an affordable way for them to be able to come and go as they please. Nothing worse than getting property taxed out of your own home in your old age -- for which I have seen happen many a time in my lifetime to others (mostly widows) because their pensions could not keep up with their property taxes. Texas offers real and genuine breaks on this, and does offer various property tax relief schemes to Vets under age 65 and under 100% VA rated, too.

V/R,
nwlivewire

 

You are correct. Your disability pay is not taxable but any other income from any source what-so-ever is unfortunately and they want every single penny of it they can "PROVE"!

 

So

So which of them do you chose?

 

nothing to worry about not declaring your disability as income as all VA disability payments are tax free. See this for details: https://www.irs.gov/Individuals/Information-for-Veterans-with-Disabilities and for those on employer disability payments here: Are Disability Pensions and Benefits Taxable Income? | Nolo.com