Is filing taxes necessary if someone only receives social security and VA benefits?

Social Security and VA benefits can sometimes be taxable, depending on your dad's total income. For Social Security, if his combined income (adjusted gross income + nontaxable interest + half of Social Security benefits) exceeds certain thresholds, then up to 85% of benefits could be taxable. However, VA benefits are generally tax-free. If your father's only income is Social Security and VA benefits, and the combined amount is low enough, he likely doesn't have a filing requirement. The key is determining if his income meets the filing threshold, which depends on filing status (single, married, etc.). Even without a filing requirement, there might be benefits to filing - like getting refunds of any withheld taxes or claiming credits he might be eligible for. Some seniors qualify for the Credit for the Elderly or Disabled, which could result in a refund.

After dealing with a similar situation with my mom, I discovered taxr.ai (https://taxr.ai) which really helped clarify things. It analyzes benefit statements and income documents to determine if there's actually a filing requirement. I uploaded my mom's Social Security statement and VA benefit letter, and it confirmed she didn't need to file while explaining exactly why. The tool also showed that even though she wasn't required to file, she could potentially benefit from filing to claim certain credits. Might be worth checking out to get certainty about your dad's situation without having to decode all the tax jargon yourself.

I was skeptical about taxr.ai like I mentioned, but I tried it with my father-in-law's documents (he gets VA disability and Social Security). It actually provided really clear guidance that was eye-opening. In his case, he wasn't required to file, but it showed he was missing out on a refundable credit he could claim. The benefit statement analysis was more thorough than I expected - it broke down exactly which portions of his benefits were taxable vs. non-taxable and explained why in plain English. Saved me a ton of research time figuring out the different rules for each benefit type.

If you've been trying to call the IRS to get this sorted out, good luck! I wasted HOURS on hold trying to get answers about my uncle's VA benefits and filing requirements. Then someone told me about Claimyr (https://claimyr.com), and they got me connected to an actual IRS agent in under 15 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that with just Social Security and VA benefits, my uncle didn't have a filing requirement since his income was below the threshold. But she also explained that filing could still be beneficial for certain credits he qualified for. Saved us a ton of uncertainty and worry about potential penalties.

I want to apologize for my skepticism about Claimyr in my previous comment. After struggling to get through to the IRS for over a week about my brother's VA benefits situation, I reluctantly gave it a try. I was connected to an IRS representative within 12 minutes - truly unbelievable after my previous attempts. The agent clarified that in my brother's case, he should actually file even though he's under the threshold because he had some federal tax withholding on a small pension that he could get refunded. Would never have known this without speaking to someone directly. Sometimes being proven wrong is a good thing!

One thing no one has mentioned - if your dad might qualify for any means-tested benefits now or in the future (like Medicaid or housing assistance), having tax returns on file can sometimes make that application process much smoother. My mother needed to provide proof of income when applying for subsidized senior housing, and tax returns were the easiest way to document her situation.

Does anyone know if there's a penalty for filing late if you weren't required to file in the first place? My mom is in a similar situation with just SS and VA benefits, but now needs returns for a mortgage application.

I'd also recommend checking if your dad qualifies for the Volunteer Income Tax Assistance (VITA) program. Since he's a senior with what sounds like a straightforward tax situation, he could get free tax preparation help from IRS-certified volunteers. Many VITA sites specifically focus on seniors and veterans, so they'd be familiar with both Social Security and VA benefit taxation rules. Even if he doesn't need to file, they could review his situation at no cost and provide official documentation of that determination. Plus, if there are any beneficial credits or refunds he's missing out on, they'd catch those too. You can find locations at irs.gov/vita - many operate year-round, not just during tax season.

Based on what you've described, your dad is likely not required to file taxes. VA disability benefits are completely tax-free, and Social Security benefits are only taxable if total income exceeds certain thresholds (which seems unlikely given his situation). However, I'd strongly recommend having his situation reviewed just for peace of mind. Even if he's not required to file, there might be refundable credits he's missing out on - like the Additional Child Tax Credit if he has qualifying dependents, or potential refunds from any withholding on other small income sources. The key thing to remember is that the IRS doesn't penalize people who aren't required to file. If his income truly consists only of Social Security and VA benefits below the filing threshold, he's in the clear. But getting an official determination would eliminate your worry and potentially uncover any benefits he's entitled to claim.

Great question about filing previous years' returns! If your dad wasn't required to file and doesn't owe any taxes, filing previous years is generally optional but can be beneficial in certain situations. The main advantages of filing back years would be: 1) Creating an official income record for future benefit applications (as others mentioned), 2) Claiming any refunds or credits he might have missed (you generally have 3 years to claim refunds), and 3) Establishing a clear paper trail showing compliance. However, if his situation is straightforward - just Social Security and VA benefits below filing thresholds - the IRS already has records of his Social Security income from SSA reporting. The main decision point would be whether he needs those official tax documents for any current applications or peace of mind. I'd suggest starting with determining his current year filing requirement first, then decide about previous years based on whether there are specific benefits to gain. No rush on this decision since there are no penalties involved when no taxes are owed.