Division of Military Retirement WITHOUT DFAS paying the ex-spouse

[TSDunmire70]

I divorced my ex-wife back in 2001 and retired from the Military in 2010. She receives a portion of my retirement but it is not paid to her directly from DFAS, but rather an allotment I setup through them. We were told she could not get paid directly from DFAS even with a CDRO. DFAS cannot make automatic payments/division of Military Retirement without meeting the 10/10 requirement (10 years married/with 10 years total service time)

I usually report it as alimony/other payments. How do I report it with a 1099-R from DFAS? Have I been doin this wrong?

Respectfully

TSDunmire70

[DaveF1006]

Here is how to report your 1099R.

1. Open TurboTax and Start Your Tax Return:

• Log into TurboTax and start a new tax return or continue your existing one.
• Navigate to the Wages & Income Section:
• From the main menu, select "Federal Taxes" (or "Income & Expenses" if you're using a later version).
• Under the "Income" section, find and click on "Distributions" or "Retirement Plans and Social Security" (the wording may vary depending on the version of TurboTax you are using).

Enter 1099-R Information:

• Look for an option that says "IRA, 401(k), Pension Plan" and select it.
• When prompted to enter information about your 1099-R, you'll be asked to input the details from the form.

Input the 1099-R Details:

• TurboTax will ask you to enter the information from your 1099-R form. This includes:
  • Payer’s name and address (from the 1099-R form).
  • Box 1: Gross distribution (this is the total amount).
  • Box 2a: Taxable amount (this is usually the taxable amount from your military pension).
  • Box 7: Distribution code (for military retirement, it typically shows "2" or "7," depending on whether it is an early or regular distribution).

Special Handling for Military Retirement:

• If you have a military retirement, TurboTax may ask if your distribution is from a military pension or a similar retirement plan. Select "Yes" if this applies to you.

Now since this was money that was paid to your ex-wife as alimony, you may exclude the taxable amount that is on Box 2A according to IRS Topic 452.  

• Log into your account 
•  Select Wages and income
•  Less Common income 
•  Miscellaneous Income, 1099-A, 1099>start
• Scroll to the bottom of the page to Other Reportable Income
•  Other taxable income, answer yes 
•  Then give a brief description of the income and the amount listed.
•  Once this appears in a summary screen, click on the Add Miscellaneous Income Item and
  then record it as DFAS 1099R Income paid to ex-wife as Alimony  in the dialogue box provided and record the taxable amount in Box 2A of the 1099R with a minus sign in front of the amount. Don't place a dollar sign in front of the amount.

[VolvoGirl]

@DaveF1006     The amount to the ex probably won't be the full amount in box 2a but only the amount they paid to the ex.  

[DaveF1006]

To clarify, was the full amount of the 1099R paid directly to your spouse or only a portion of the amount?

@TSDunmire70