I Am On Disability and Owe Back Taxes. What Should I Do?

I Am On Disability and Owe Back Taxes. What Should I Do?

If you owe back taxes and you are on disability, here is what you need to know:

If you contact the IRS and tell them you are on disability, they will place you in a Non-collectible status. The IRS will not levy your disability checks. Non-collectible status means that IRS has determined that making any monthly payment may compromise your ability to meet your basic monthly living expenses.

If you are due a tax refund from a previously filed return, the IRS will retain that refund and apply it to your back tax liability, even if you are on disability.

Other government benefits such as food stamps will not disrupted because you have a back tax liability.


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