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Level 1
June 4, 2019
Question

Cost at annuity starting date

  • June 4, 2019
  • 1 reply
  • 11 views
I'm trying to submit my tax return and the review is indicating one issue to be addressed. It is indicating that I must enter cost at annuity starting date.  I don't know what should be entered.  I began receiving a portion of my ex-spouse's military pension on 1/1/16.  What should be entered?

1 reply

Level 15
June 4, 2019

It's quite likely this is a plan your spouse did not pay for with "after tax" dollars, if anything was paid for the plan.  If this is the case then you should enter zero for the cost of the plan.  The full amount of the money received would be considered taxable.

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