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

[gdsnide]

The next time just get Bank Drafts for the bills U wish to pay off & there is no cash involved

GARY

[Josephine]

Gary,

Actually there was no cash involved, if we are talking about cash, in

the sense of greenbacks.

We have two checking accounts, one joint and one in my husband's name.

The bank with the joint account issued an Authorized Check to my

husband to place into his private account.

Thanks,

Betty

[Josephine]

jbasser,

The only withrawls that are flagged are the ones you get from , say a retirement fund or a roth account.........if you have 100k in the bank,( savings account ) the irs knows it, if you decide to take out 15k they ARE NOT notified, its your money and you supposedly paid taxes on it already so lets not confuse the issue here, money coming IN over 10k is reported, if you take it out it has no bearing on anything or anyone and you are NOT taxed on a withdrawl unless based on the aformentioned.

The check was not from a Roth Account and certainly not retirement,

so is this to say, what I did will not to be taxed.

Thanks,

Betty

[john999]

You know the way banks are failing some vets who get big retro might not want to keep more than 100,000 in any one bank. That is the FDIC limit. I heard on the news that a bank in California actually failed and there was a run on the bank. The ones with more than 100,000 won't get back all their money. That is hard to believe but true.

[JR Reihs]

Josephine,

You will not be taxed!

[LarryJ]

NO tax on VA compensation.

Now, if you invest your VA compensation and make money on the investment, then there is "capital gains" tax, but only on the PROFIT as will be reported on a form 1099 from the investment source (bank, brokerage, etc.).

But, NO, you don't owe the IRS.

Now, fer gosh sakes, QUIT worrying.