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Social Security Social Security benefits and tax issues


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Old 08-14-2019, 12:16 PM
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SSDI tax and insurance confusion....

Hello Everyone,

I have a changing financial circumstance that has me confused. Very confused......

My wife works and her adjusted gross income was around $18k last year.

I have not worked in three years.

Our household income has been low enough that we have qualified for Medicaid.

This year we bought a $4000 house to fix up and use as a rental. We have spent close to $10,000 in repairs so far. I expect about $2100 in rental revenue in 2019.

To add to the confusion.... I was just approved for SSDI.

I expect to receive a lump sum of $24,000-$30,000 and monthly payments of around $1000.

I have been trying to educate myself as to the difference between Medicare and Medicaid. From what I can see so far, and considering my ongoing health issues, the switch to Medicare is going to be a financial burden.

If we switch to filing separately my income should make me eligible Medicaid but will my lump sum for back benefits affect my eligibility?

Can my wife keep all of the rental property expenses and income on her taxes?

I am still a little fuzzy on how to file/report the benefits for past years. Can you explain that to me?

My head is really spinning. Any additional advice or suggestions are most welcome.

Thanks

S.



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Old 08-15-2019, 11:35 AM
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If we switch to filing separately my income should make me eligible Medicaid but will my lump sum for back benefits affect my eligibility? ======>>>>?
It depends; Disabled people who are approved for Social Security benefits will receive Medicare, and those who are approved for Supplemental Security Income will receive Medicaid. in most states, when you, as a disabled person , are approved for SSI, then you are also automatically approved for Medicaid benefits however, in the states of Illinois and Ohio, they may have a lower income or asset limit for the Medicaid program than the SSI program.so plz contact your state local Social Security office regarding their Medicare/Medicaid eligibility.


Can my wife keep all of the rental property expenses and income on her taxes? =====>>>it depends ; If you live in one of the community property states, you will be required to provide additional information regarding your spouse?s income
If the rental property is in both names and you file separately you can split the rental income and all expenses in half if a joint account is used to receive rents and pay expenses. You could also decide to choose who will claim the rental property on their return.
If an account owned by only one of you is used for the rental activity and/or the rental is only in one of her name, then, she per should claim the rental activity on her separate return.


I am still a little fuzzy on how to file/report the benefits for past years. Can you explain that to me? My head is really spinning. Any additional advice or suggestions are most welcome. ===>>as mentioned above



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Old 09-07-2019, 04:27 PM
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Join Date: Feb 2018
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Thank you for your reply.

We do live in a community property state. The rental house is in a NON community property state.

I am still confused about whether it would be better to file jointly or separately. I am not clear on:

What portion of my benefits are taxable? How do I delineate that from taxable income?

How do I manage the lump sum? I couldn't find the answer above.... I understand that somehow I can apply it to the years that the benefits where issued for. From June 2016 through July 2019.

Big question that would help me understand what I am doing is What line on my 1040 are they looking at for income eligibility for Medicaid?

If we can combine our income and deduct all expenses including the rental property we may be in good shape for 2019 provided that we can use adjusted gross income.

ok...... As I type this I am pouring over IRS forms and instructions and trying to ask marginally intelligent questions and my brain is turning to mush......

Can you recommend a CPA with infinite patience and speaks in small words....



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Old 09-09-2019, 01:47 PM
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Arrrggghhh....

I have been studying material for four days trying to find answers and have learned quite a bit but still have some confusion.

I called a local CPA and he proceeded to tell me that none of my SSDI benefits are taxable. I understand that if I were single and did not have any other income that may be true. My wife works part time and we have a modest rental house ($350/month) that we have spent more on repairs this year than we have received in rent.

We talked about it enough that I have concerns about this gent's knowledge regarding SSDI and taxes.

I am in the Walla Walla, WA area. Can anyone here recommend a CPA that may be able to help me out?



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Old 09-10-2019, 07:14 AM
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Quote:
Originally Posted by SteveMobiley View Post
Arrrggghhh....

I have been studying material for four days trying to find answers and have learned quite a bit but still have some confusion.

I called a local CPA and he proceeded to tell me that none of my SSDI benefits are taxable. I understand that if I were single and did not have any other income that may be true. My wife works part time and we have a modest rental house ($350/month) that we have spent more on repairs this year than we have received in rent.

We talked about it enough that I have concerns about this gent's knowledge regarding SSDI and taxes.

I am in the Walla Walla, WA area. Can anyone here recommend a CPA that may be able to help me out?
You may try to contact WA state board of accountancy for a licensed cpa in Wa state or
You may contact National Association of Enrolled Agent for more accurate professional help.
Good luck..



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