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?
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.
Q. I would like to know who is responsible for informing employees who work for the government of the windfall elimination provision. I was not told about the WEP until I went to the Social Security office to file for my Social Security retirement. My Social Security benefits were reduced by more than $1,000 per month. I worked hard all my life with two jobs for over 30 years. For what? Just to have my benefits go to someone who did not work but gets benefits. How are you to be informed of this law?
Q. I retired from CSRS on disability. I have my 40 quarters. My wife is retired from Social Security. Can I draw from her account at age 62?
Q. I’m currently employed as a U.S. Probation Officer for the federal judiciary. I recently volunteered to relocate to another office within the same agency/district. My new office (New Bern, NC) has a lower cost-of-living adjustment than my previous office (Raleigh, NC). Due to short notice, I was unable to sell my home in Raleigh prior to moving to New Bern. As a result, I continue to pay a mortgage and properties taxes at my previous duty station, Raleigh. The federal judiciary did not authorize any relocation expenses. However, I’m looking for literature governing COLA disbursements for situations similar to…
Q. I plan to retire this year and start my own business. I am CSRS Offset and 55 years old. How will any income I make from my business affect my pension and taxes?
Q. Is the CSRS retirement benefit taxable in Massachusetts?
Q. I am interested about buying back my military time. However, I received a separation bonus from the military when I left. How is the buyback calculated in addition to my time in service? (Is it considered normal income?)
Q. I will complete nine years of civil service as of August, as well as 22 years of military service. If I apply for Voluntary Separation Incentive Pay, what, if anything, can I expect to receive?
Q. What are the tax benefits, if any, for buying back my military time into my FERS? In 2012, I paid close to $11,000 to buy back my military time into my FERS. Now I’m finishing up my 2012 taxes and I’m curious if there is any kind of adjustment/deduction for having shelled out $11,000 toward retirement?