Question re: Retired military pay, deductions from retired pay & former spouse $$

[ValleYum]

Happy Monday! I have a few questions - well, I have a million questions but will only ask a few today. hehe

With respect to Schedules I & J:

(1) How/where do we show the federal withholding and health insurance premiums for hubby's military retirement pay?

It asks for his retirement income on Line 12 of Schedule I but there is no place to subtract any 'payroll deductions' from the retirement income.

If I had to guess, I would say those deductions should go on Schedule J Line 11c for the Tricare premium and on Schedule J Line 12 for the taxes with a notation as to the source. Thoughts?

(2) Same retirement pay, different question! This is in regards to his former spouse deduction: Do we list the full amount of the pay on Schedule I Line 12 - then deduct her portion as a court-ordered judgment (it *is* in his divorce papers) on Schedule J Line 14?

Why I am even asking is that his 1099-R from DFAS shows only his gross distribution, his taxable income (which are both the same amount) then his federal income tax withheld.

His ex-wife now gets her own 1099-R from DFAS -- after a enormously fun IRS audit as we claimed 'alimony paid' before 2007 which she never thought to claim as income. :clenched tooth smile:

His RAS (Retiree Account Statement) shows his total retirement then her deduction and the other items withheld from his pay (Tricare, FITW and VGSLI).

IMO, it is an absolute wash either way I list it as far as the former spouse deduction goes but I want to be totally transparent and not muddy any waters. What would you guys recommend?

Thank you in advance - I hope I wasn't too confusing.

[tcreegan]

Hi ValleYum,

Boy, schedule I is not setup for retirement income is it ?

J-11 and J-12 say 'not deducted from wages' The deductions go on I-4 but since that is above the retirement income line I-12 it really looks funny.

To keep things simple, I would list the retirement check on line I-1 and note that it is retirement income and note I-12 'see above'

(Any paralegal/attorneys here? This makes sense, but is that OK?)

The 'other spouse' money that you pay goes on J-14 Schedule I is for what you receive

So you leave it in Schedule I and it gets deducted out on Schedule J, a wash like you said.

I hope I wasn't too confusing

....if you weren't we wouldn't believe you were filling out BK papers

Tom in Colo