QUOTE(Karin und Otto @ Jan 31 2008, 08:19 AM)

QUOTE(john_and_marlene @ Jan 31 2008, 08:13 AM)

QUOTE(Karin und Otto @ Jan 31 2008, 08:04 AM)

QUOTE(john_and_marlene @ Jan 31 2008, 07:55 AM)

QUOTE(YuAndDan @ Jan 31 2008, 07:45 AM)

US Citizens file returns (1040) every year, only if income falls below a certain amount then can not file a return, but IRS recommends filing even if income is Zero.
Taxable and non-taxable income is reported on the return (1040), they just don't have to pay tax on the NON-Taxable amount reported.
What line on the 1040 requires the reporting of non-taxable income other than non-taxable interest?
16A (for example) with 16B being the taxable portion (if any) of that amount.

16b is only for partially taxable pensions and annuities. You would not report non-taxable disability income there.
I'm assuming the OP was interested in the disabled veteran's disability income which is not taxable and is not reported on the 1040. It is not a pension or annuity and is wholely non-taxable.
So your saying (to the OP) he/she does not need to file a tax return...?
No--that's not what I replied. I said they have to pay taxes and file if they have taxable income. Subseqent posts were disputing the claim that non-taxable income is reported on the 1040.
I have 3 types of income.
1. Earned income
2. Pension income
3. Disability income
I file a tax return and report the Earned income and pension income. I do not report the disability income--it is not taxable and there is no place to report it.
I get a W-2 for the earned income.
I get a 1099R for the pension.
I do not get any form for the disability income.