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

[deltaj]

What I wonder about this situation is whether the husband's name is on the house title and on the mortgage. The reason I'm wondering this is whether this payment on the mortgage could be construed as a gift from the husband. I'm wondering also whether this couple lives in a community property state where both have responsibilities for debts of others. I realize V.A. comp isn't taxable but this may be a spouse who has a debt and is benefitting from the husband's V.A. comp. On the other hand, doesn't a husband have the right to spend his V.A. comp any way he wants without any tax consequences to his wife whom he gives a gift to?

[Chuck75]

It has been changed. The figure can be as low as $1000. There is likely some (IRS approved) formula programmed into the banks computers that sets the limit for a particular person and transaction.

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]

What I wonder about this situation is whether the husband's name is on the house title and on the mortgage. The reason I'm wondering this is whether this payment on the mortgage could be construed as a gift from the husband. I'm wondering also whether this couple lives in a community property state where both have responsibilities for debts of others. I realize V.A. comp isn't taxable but this may be a spouse who has a debt and is benefitting from the husband's V.A. comp. On the other hand, doesn't a husband have the right to spend his V.A. comp any way he wants without any tax consequences to his wife whom he gives a gift to?

deltaj,

Let me see if I can figure out what you are saying. Well, as a mattter of fact my name is not on the mortgage or any debts, charge cards etc. I have been completely dependent upon my husband for 43 years.

My name is on the deed to the house and yes, the new car I paid off my name is on the title , but never the debt.

When I left the military I was and remain an emotional cripple, never earned a dime to speak of.

I never considered the mere amount the VA paid me as a gift to my husband, considering he has fed me, paid for my private insurance, provided me with a home and all the necessities and my doll collection and antiques which are my luxuries.

I knew that the Huntington R. O has and have me on their Sxxx list.

When they went to ever extreme to deny me and then for the BVA judge to grant and pay me retro to my first filing date, I felt they may want their money back one day.

Do I trust those Bxxxx, absolutely no!!!!

I knew when the check came, I would give ever dime to my husband for safe keeping.

Am I still fighting with the Huntington R. O , You bet!!

I have Senator Warner after them right now to complete what they didn't finish.

Pay me the 11 years of retro they owe me for my husband.

Pay me TDIU being that they themselves gave me a NSC Pension for anxiety with depression and for headaches. Of course the Va

denied me a month later due to excessive income of husbands, but it sure didn't make the illnesses change.

They stated in 1983 I became unemployable due to these disabilities.

What do they do in 1992 they start with 10% - at this time, because they state I got alone well with my husband and children.

If you read the medical records for those years, I was in the biggest fight with my 19 year old daughter. Some happy home.

They state they gave me to 70 % because I remained married to my husband for some 40 some years.

I am laying low, but a lawyer will come in at the end to collect all of my money.

When they granted 70% for Chronic Anxiety they should have awarded me 100% due to umemployable.

They sent me a Rehab sheet instead.

Hog wash. If they said I couldn't work in 1983 and now I have service

connected these illnesses, they low ball me.

Betty

Edited July 23, 2008 by Josephine