Irs Taxes On Retro For Compensation

[Josephine]

Best to you and family and remember to never take out 10k at once from bank as they tell IRS and then you have a problem and have to pay taxes on the 10k!! (9999.99 is ok not reported but 10000. is. I mean that is in one day)

Picked this up from rentalguys success story.

I am a bit concerned:

I took the six figure 16 year retro and deposited it into my bank in my name and left it there for 24 hours and then went back to the bank and the teller wrote a authorized check for the full amount in my husbands name.

This he took and paid off the mortgage.

Does this mean that now I will have to pay taxes on this money,

for the amt would be more than I have.

Thanks,

Betty

[Josephine]

Rental is correct on the three teller rule, anytime that kind of money is moved or taken out of an account 3 tellers or a teller and the floor manager at the time need to sign off on it.

Funny story sort of: Years ago right about when I got back from Nam. My then steo father had an accident and he got a check from the insurance for ithink around $600 bucks to fix it. Well he goes to the bank the check was drawn on and the teller tells him she is going to have to have the manager sign off on the check He thought it was strange at the time but didn't say anything. She comes back after having sign by the branch manager no less. She begins to count out I think it was around $13,000 something and puts it in a sack and gives it to my step dad.

He comes out to the car were I was waiting and says come on lets go! He then says look and the money in the sack, well I looked and all the cold hard cash and said to him at the time what are you going to do? Well he said first lets get some beer then lets go get your mother.

He kept the money but the bank caught up to their mistake and he ended up having to pay back all the money above what the actual amount of the check was for!!

Tha is one of the reasons for the 3 teller rule but sometimes that does not work!!

Stillhere

Yes, the bank always catches up with you, but it sure is fun

when they make that mistake.

Thanks a bunch!

Betty

[rentalguy1]

Thanks a bunch, Shane,

Where is the pictures of the new Truck?

Betty

I'll take some after I sign the papers on it. i don't want to jinx the deal.

[carlie]

Seems to me like as long as the cash stays in the claimants name

there would never be the question of ANY tax (or other possible) problem.

jmho,

carlie

[JR Reihs]

Josephine,

Do not fret, your VA is non taxable, uncle george knows this as the bank deposit will show where it came from, yes the IRS was notified and they also know where it came from.

When you go to a bank and deposit 10k or more the bank will notify the IRS, this will give them grounds to start looking where this $$ came from if a pattern continues. I beleive this started during the early mob days during prohibition.

[Philip Rogers]

I believe that $10k figure has been lowered. My local bankers won't divulge the new amount as it appears to be "top secret," now.

pr

[Josephine]

Josephine,

Do not fret, your VA is non taxable, uncle george knows this as the bank deposit will show where it came from, yes the IRS was notified and they also know where it came from.

When you go to a bank and deposit 10k or more the bank will notify the IRS, this will give them grounds to start looking where this $$ came from if a pattern continues. I beleive this started during the early mob days during prohibition.

JR Reihs,

I am hoping the pattern will continue.

I am waiting to see what now they will do about the forgotten

unadjudicated claim back to 1992 for the headaches and the TDIU.

I am stepping in with a lawyer before my year is up to get rid of

that 10% rating for the first 5 years and the 30& and try to rid

myself of the 50%.

I should have been declared 70% with unemployable from 1992 to date.

Being that my NSC declares me unemployable to 1983 this is when they

should have declared the 100% rating.

I may be asking for a miracle.

I want to see where that denied due to excessive NSC Pension comes

into play. As I told Joey on the telephone, they may have denied

me due to excessive income, but not because they didn't declare

me unemployable due to the now service connected illness.

Thanks a bunch!

Betty