I'm not very educated on how different retirement and pension plans are paid out, so this may seem like a dumb question.
On the Sch I line 4 deducts payroll taxes.
On line 12 it asks for pension or retirement income. My lawyer listed my VA benefits on line 12. However, he listed the gross amount. My pension has taxes deducted from it.
Where does the Sch I compensate for taxes deducted from pensions? I'm assuming that if taxes are deducted from normal income that I should be able to deduct the taxes that are taken out of my pension every month. Maybe there are some pensions that pay pre-tax amounts and the recipient is responsible for the taxes at the end of the year. But mine is deducted every month.
Should the monthly amount been listed in lines 1 thru 4, where the taxes would have been subtracted. Or left on line 12 but the amount listed as the gross minus FITW amount?
On Sch J he goes on to use the gross amount with some elevated expense amounts. This just doesn't seem logical to me, using the gross figure when computing expenses and disposable income. How can money that I never receive (deducted for taxes) be used to compute the 2 schedules?
I have a feeling my lawyer dorked this up but not sure. Does anyone have any knowledge of this?
Also, if I need to file an amendment how will a trustee view the changes in numbers? Will it look fishy to him?
On the Sch I line 4 deducts payroll taxes.
On line 12 it asks for pension or retirement income. My lawyer listed my VA benefits on line 12. However, he listed the gross amount. My pension has taxes deducted from it.
Where does the Sch I compensate for taxes deducted from pensions? I'm assuming that if taxes are deducted from normal income that I should be able to deduct the taxes that are taken out of my pension every month. Maybe there are some pensions that pay pre-tax amounts and the recipient is responsible for the taxes at the end of the year. But mine is deducted every month.
Should the monthly amount been listed in lines 1 thru 4, where the taxes would have been subtracted. Or left on line 12 but the amount listed as the gross minus FITW amount?
On Sch J he goes on to use the gross amount with some elevated expense amounts. This just doesn't seem logical to me, using the gross figure when computing expenses and disposable income. How can money that I never receive (deducted for taxes) be used to compute the 2 schedules?
I have a feeling my lawyer dorked this up but not sure. Does anyone have any knowledge of this?
Also, if I need to file an amendment how will a trustee view the changes in numbers? Will it look fishy to him?