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Discussion Forum Index --> Tax Questions --> Taxable pension income for divorce settlements
Dacowles16 (talk|edits) said:
| 20 June 2006
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| I have a client that is being sued by her ex husband for a portion of her pension and she needs to know how to handle if the pension administrator cannot send seperate checks to her ex husband (meaning the income would be taxable to her but she would have to remit a portion of the retirement income to ex husband and how can she deduct since entire pension distrubution would be taxable to her since all payments would be made to her. I advised that the pension administrator should send seperate payments to her ex husband and a 1099R to him but they may not be able to do this.
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Warren (talk|edits) said:
| 20 June 2006
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| I think that they have to do it by law. I'm not 100% certain of that but I believe that's the case.
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Dennis (talk|edits) said:
| 20 June 2006
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| You need the judge to issue a Qualified Domestric Relations Order to the pension administrator. The pension then is split and each party acts independently.
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JR1 (talk|edits) said:
| 20 June 2006
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| Must have the QDRO..otherwise, she gets taxed on the distribution that he gets! Sad, but true. QDRO QDRO QDRO are you repeating after me?
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Riley2 (talk|edits) said:
| 20 June 2006
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| The answer to your question depends, in part, on whether the client is domiciled in a community property state. If the client is domiciled in a CP state, it is possible to claim a deduction for the checks written to the ex-spouse.
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Dacowles16 (talk|edits) said:
| 12 July 2006
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| thanks everyone for your input - this was the first time I posted a question and I was very pleased
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