I have been totally disabled since 12/2005. I am currently receiving compensation from a service connected disability and I am receiving social security disability income. Do I have to file income taxes for 2006? I have also contributed 4000 dollars to a traditional IRA during 2006. Thanks for any help.

First, you are probably NOT eligible to contribute to a traditional IRA for 2006. In order to contribute to any IRA, you or your spouse must have earned income from a job or business. Based on what you told me, you have no earned income. If your spouse works, then you are okay.

Your disability pay from the Armed Services (I assume that's what you meant by service-connected disability) is NOT taxable. Your Social Security disability is also not taxable.