Q. This year’s tax (2012) is the first I will file as a FERS retiree. I understand a portion of my retiree pay is a return of contributions and is tax-free. How do I report this? Will it be identified on my 1099?
A. The 1099 form that the Office of Personnel Management sends you will show the amount of your retirement contributions. Plug that number into the worksheet you’ll find in Internal Revenue Service Publication 721, which you can access at www.irs.gov.
