How do I report pension income paid for restitution?

sazsag · ‎June 4, 2019

My sister signed her pension over towards her federal restitution. How do I reflect that on her taxes?

MaryK1 · ‎June 4, 2019

She should receive a 1099-R for the pension which is reported as income. There are no tax deductions for federal restitution.

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MaryK1 · ‎June 4, 2019

She should receive a 1099-R for the pension which is reported as income. There are no tax deductions for federal restitution.

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sazsag · ‎June 4, 2019

She did receive a 1099-R and taxes were taken out. Is there an exemption for early withdrawal to pay this?

MaryK1 · ‎June 4, 2019

Yes, unfortunately, she will probably have to pay the penalty because it does not fit into an exception. Was she forced to get the money from the pension?

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sazsag · ‎June 4, 2019

It was her decision to take her pension and apply it towards the restitution.

How do I report pension income paid for restitution?