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

[otey2171]

I figure at todays low interest for savings accounts that $100,000.00 at 1% interest for 1 day comes up to about $2.74.

[halos2]

Betty,

We took out 40,000 in 1999 and got screwed by IRS and the state. The bank has to report it. Good friend took out 16,000 3 years ago and then 2 weeks later took out 10,000 and he got turned into IRS and the state by the bank and then the bank told him the 9999.99 law so he and we never did it again. My father in law took out 10,000 last july and the IRS and state sent him notifications to pay tax on his withdraw and he is 85 years old as disabled...was doing a loan to some con's and now is trying to locate the crooks but he had to pay over 800.00 in to IRS and more to the state.

Of coarse not being able to work since 2002 I wish I had any $$ now!

This was all cash not checks or certified funds from one bank to another. The problem was CASH, so you won't have a problem. You can put what you want, any amount in the bank but when you try to take the cash over 9999.99 in one 24 hr period that is when they report you.

quote name='Josephine' date='Jul 12 2008, 06:28 AM' post='98076']

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

[jbasser]

After reading all the info posted here, Would it be more reasonable for a Vet who gets a large sum of retro in the bank to pay off bills by writing a check or signing up for electronic banking at the banks where you do business. That goes for credit card companies too.

That way there is no reason to have a withdrawal flagged.

J

[JR Reihs]

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.

[jbasser]

That is true JR. Why even bother with taking it out. just pay by check or pay by phone.

[rdawg]

if the money is considered a gift to her husband it will be taxed. She should have paid off the loans herself. If where she lives is a community property state then she cannot gift her husband that money as half of it was already his.