[jennalynn1969]

Hi
I finally received disability in Nov. of 2007, but I did not get the retroactive checks until Jan. When I cashed the check I gave a donation of several thousand dollars and tithe on my monthly checks. I know every Jan I get a statement from my church as this is tax deductable. I am confused about how this will work since I do not have to file taxes on SSD and SSI at least as far as I know. What are the rules about this. Do I have to file, do I even need to worry about the donation receipt etc etc?? Thanks from one very confused person.

[AtlantaTaxExpert]

JennaLynn1969:

Charitable donations are deductible as an itemized deduction. More than likely, your standard deduction of $5,450 exceeds your total itemized deductions, so you will claim the standard deduction, IF you are required to file to begin with.

It is likely no tax return is required, because SSD and SSI, by itself, is not taxable because the amount is normally not large enough.

If, however, you received a large payment that represents several years of disability retroactively in January 2008, then THAT payment is probably large enough to be subject to income taxes.

There is a complex calculation that must be done to determine your tax liability, and it must be done manually (no tax software that I am aware of can do the calculation). For this reason, you should IMMEDIATELY contact a competent tax professional to help you with your 2008 tax return.

If you want my help, email me at [email protected].