Browsing: taxes

Maximum earnings


Q. You recently answered a question regarding the maximum earning amount for 2014 is $15,480 before the Social Security benefit would be reduced. Does the SSA consider military retirement, VA disability pay, along with TSP disbursements as “earnings”? A. Those aren’t earnings. Earnings are income received from wages or self employment.

Annuity taxes


Q. I’m a recent federal retiree and I’m trying to project my income for the year. Is the starting point for the taxable portion of my monthly annuity the amount before or the amount after the survivor’s benefit is deducted? From what I gather from IRS Pub 721, the deduction is a pre-tax deduction, but it lowers the tax-free portion amount of my monthly annuity. Is this correct?

TSP and taxes


Q. I intend to make a lump-sum payment this year to pay off the balance owed to recapture my military service for inclusion of this time toward my FERS retirement. I am paying it with after-tax dollars I have saved. Can this amount be claimed as a tax credit or claimed as a tax deduction? Which document says what can be claimed or that neither can be claimed? A. No. It can neither be claimed as a tax credit nor a tax deduction.

Civil Service Retired tax question


Q. My father retired from civil service in 1987.  Box 2a “Taxable amount” on his form 1099-R says the taxable amount is “unknown.”  My tax program asks for an amount.  How do I find out what the taxable amount is?

11 questions on military buyback


Q. 1. How are the days of active-duty service calculated? 2. Is that a one-to-one credit added to years of service? 3. Can you buy it back after you retire and adjust the annuity accordingly? 4. Can you buy back portions of it? 5. Can you pay in installments? 6. What percentage of military pay per year would you get in retirement? For CSRS, it is roughly 2 percent based on high-3; would it be calculated on actual salary back then or adjusted for inflation? 7. Any chance for a retroactive payment once established? 8. Will I lose any benefits…

W-2 or 1099?


Q. I retired from the federal government in late 2012. This is my first full year retired. Will I receive a W-2? Or is the 1099 used instead?

39 quarters


Q. I am 61 years old and have been retired from the fire service. I have, according to Social Security, 39 units which were not earned at fire service. If correct, I need one unit to earn Social Security at age 62, and I need this unit also to be eligible for Medicare at age 65? Is there any other way to get this one quarter other than going to get a job for three months?

FERS redeposit and taxes


Q. My wife left her government job a number of years ago and withdrew the money from her FERS account. She re-entered government service a few years ago. She then requested the redeposit amount required to bring her FERS account whole again. To make her FERS redeposit payment, she took a withdrawal from her IRA. We received a 1099-R from her IRA firm showing the withdrawal and we will need to report on our taxes as income. Since the money went back into FERS, can I deduct that amount as if it were being rolled over into an IRA?

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