topic Exspouse and military retirement pay in Retirement tax questions

Exspouse and military retirement pay

heylady214 — Mon, 03 Jun 2019 19:18:02 GMT

I receive a portion of my ex husband's military retirement and he has never given me a 1099 -R. What do I do? He deducts it as alimony and it is not. My alimony stopped several years ago.

Your share of your ex-husband's military retirement is co...

ToddL — Mon, 03 Jun 2019 19:18:04 GMT

Your share of your ex-husband's military retirement is considered alimony, deductible by him and reportable by you.

If DFAS pays you directly and sends you a Form 1099-R, you report that amount on your tax return (in Retirement Plans > Pension Plans (1099-R).

If he pays you directly, report it under Alimony Received interview, under Less Common Income.

In 2008, the Tax Court recently ruled that a taxpayer’s payments to an ex-spouse under the Uniform Services Former Spouse Protection Act (USFSPA) representing her share of his military retirement pay were deductible alimony payments. - See more at: http://www.journalofaccountancy.com/issues/2008/jan/pensionisalimony.html#sthash.FvXKK2gK.dpuf

Re: Your share of your ex-husband's military retirement is co...

chanceka — Sun, 30 Jun 2019 23:24:56 GMT

Can you confirm that this is, indeed, current information. My understanding is that this IRC was repealed.

Re: Your share of your ex-husband's military retirement is co...

sarajane01 — Sat, 22 Feb 2020 18:15:12 GMT

I have always claimed my alimony as retirement income - pension distribution from a qualified plan. Is this in error? Can't seem to find a clear answer on the recipient side. I know I need to report it yet I am wondering if I unknowingly am paying a 10% penalty for early withdrawal!

Re: Your share of your ex-husband's military retirement is co...

DMarkM1 — Sun, 23 Feb 2020 13:42:08 GMT

Military retirement pension is a non-qualified plan. You can check your past tax returns for any "other taxes." You would have a form 5329 "Additional Tax on Retirement Distribution." You could also check on line 6 of schedule 2.

Re: Your share of your ex-husband's military retirement is co...

Runin09 — Wed, 04 Mar 2020 14:42:01 GMT

Hello,

I receive monthly community property payments directly from DFAS from my divorce, of which I have them take out taxes before I receive payment. Please help me to understand why then am I paying taxes on it a second time when I report it when filing taxes. How do I stop having to pay taxes on it twice?

Thanks!

Re: Your share of your ex-husband's military retirement is co...

DMarkM1 — Wed, 04 Mar 2020 16:06:26 GMT

You will not be paying taxes on the income twice. You report on your tax return all income including the 1099-R you should have received for the retirement income. On that 1099-R you will see and subsequently enter in TurboTax, any taxes that were withheld so that you get credit for those payments. At the end, if you have paid more than your tax liability, you will get a refund. If you have not paid in enough you will owe a tax payment by 15 Apr 2020.

Re: Exspouse and military retirement pay

Oliver7088 — Mon, 20 Apr 2020 22:51:51 GMT

What if the divorce decree states that the pension is not to be considered alimony?

Re: Exspouse and military retirement pay

Oliver7088 — Mon, 20 Apr 2020 22:54:07 GMT

The divorce decree states pension is to be considered an asset acquired during the marriage

Re: Exspouse and military retirement pay

Elizabeth580 — Sun, 14 Jun 2020 04:43:08 GMT

Is The former spouse of a military veterans portion of his retirement pay considered alimony? I get 17% and it is court-ordered in the state of California

Re: Exspouse and military retirement pay

VolvoGirl — Sun, 14 Jun 2020 04:51:42 GMT

Do you get your own 1099R for it? Whether it's Alimony or considered pension it is taxable either way. You just enter the 1099R under Retirement not Alimony. My friend gets both from her ex in California. She gets part of his Military retirement and enters the 1099R plus he pays her Alimony each month.

Re: Your share of your ex-husband's military retirement is co...

NetteAnn — Thu, 27 Aug 2020 01:02:58 GMT

In regards to this question... what if there is a Survivor Benefit Plan (SBP) election? Also, we receive a 1099R. The new tax rules treat alimony differently after 2018. Is it no longer retirement pay?

Re: Your share of your ex-husband's military retirement is co...

peltierm32 — Thu, 18 Feb 2021 21:15:17 GMT

Does this still hold true for 2020 tax purposes? I retired from the military last year and paid my ex-wife (with a personal check) for 6 months of her portion of the military retirement. The military caught up and paid her via direct deposit for the other 6 months. My 1099R shows me getting ALL of the retirement income and paying ALL of the taxes. Is there a way I can deduct her portion from my gross distribution and recoupe the taxes I paid on her portion of the retirement?

Re: Your share of your ex-husband's military retirement is co...

AmyC — Fri, 19 Feb 2021 00:13:22 GMT

No. Tax law used to be that alimony was deductible by the payer. If your divorce was before the laws changed, you are grandfathered in . If you got divorced 2019 or later, then alimony is not deductible to you.

See IRS Topic No. 452 Alimony and Separate Maintenance for complete details.

If the payments were not alimony, your divorce decree would have to be pretty specific with what it is and tax consequences.

@peltierm32

Re: Your share of your ex-husband's military retirement is co...

peltierm32 — Fri, 19 Feb 2021 17:12:48 GMT

Thank you for the reply. I was divorced in 2017. I retired on 1 Jan 2020 and the QDRO was updated (amended) in June 2020. Am I still grandfathered in? The amendment does not state anything about "alimony".

Re: Your share of your ex-husband's military retirement is co...

Irene2805 — Fri, 19 Feb 2021 17:26:44 GMT

If the modification did not expressly state that the repeal of the deduction for alimony payments applies to the modification, you are still grandfathered in. You can deduct the payments as alimony. [IRS Topic No. 452 Alimony and Separate Maintenance]

@peltierm32

Re: Your share of your ex-husband's military retirement is co...

43GPW — Tue, 11 May 2021 17:18:58 GMT

My divorce decree is dated Dec 1995. In regards to military retirement distribution my decree says " Pursuant to the above formula, Plaintiff's portion of Defendant's retirement would equal $938.00 per month." That is all it says and that is the only mention of the division of my military retirement pay in the document. DFAS deducts that amount from my monthly retirement pay direct deposit and sends it to my ex-spouse. I don't see that money but pay the income taxes on that $938 per month. Can the $938 be deducted as alimony or some other line item?

Re: Your share of your ex-husband's military retirement is co...

DMarkM1 — Tue, 11 May 2021 17:46:36 GMT

Normally you are not paying the taxes on those payments. Your 1099R would only include the amount you received, while you ex-spouse gets a 1099R showing the amount they receive. You should contact DFAS to confirm.

Here is a link with DFAS contact information in the upper left column. Also note the answer to the question, "Are USFSPA retired pay as property payments taxable to the former spouse?"

Your share of your ex-husband's military retirement is co...

Winterstorm21 — Fri, 05 Nov 2021 17:05:52 GMT

I recieve a pension of my 2007 divorce under 20/20/20 rule, ex-spouse military pension as direct garnishment from DFAS, & recieve a 1099R ,I've had my federal taxes withheld from it. I recieved a separate alimony for 24 mionths then it ended. I recently moved to a state with state tax. AL. Is my part of pension I recieve, also subject to state taxes as well? I have not been able clarify, any clear guidance, concerning this online, whether the pension I recieve is liable to state taxes as well? IWe were divorced in Texas, Im not sure if is was considered property settlement or alimony. I want to be confident II have the correct tax advice now & time to make any correction, so I might sleep soundly, instead of suffering consequences later.

Re: Your share of your ex-husband's military retirement is co...

mldrennan76 — Fri, 21 Jan 2022 16:30:57 GMT

Shouldn't this be added after the second sentence in ToddL's reply: If DFAS pays you directly and sends you a Form 1099-R, you report that amount on your tax return (in Retirement Plans > Pension Plans (1099-R). When DFAS pays you directly, he cannot deduct the payments as alimony because they are not included in the "Gross Distribution" shown on his 1099-R.

Thoughts??