How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Wendy Reed Your Own Question

Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3345
Experience:  15+ years tax preparation and tax advice.
Type Your Tax Question Here...
Wendy Reed is online now
A new question is answered every 9 seconds

I started receiving FERS Disability in July 2006. In Aug. 2009

Customer Question

I started receiving FERS Disability in July 2006. In Aug. 2009 my SSDR was approved back to July 2006. I received backpay of $37000. I notified OPM and 4 months later was told I has to repay the $37000 in one lump sum or make payment of $376.00 for 101 months. I chose to make payments. I had to file amended tax returns for 2006, 2007, 2008 and claim remaining money on 2009 to pay taxes on the backpay. I was told by OPM the money I payback each year is tax exempt and would show on my 1099R. However, that has not happened. Should I still be paying taxes on money that I feel I had paid taxes on twice already? So far my 1099R's have shown the full amount of my retirement income. Thank you
Submitted: 2 years ago.
Category: Tax
Expert:  Wendy Reed replied 2 years ago.
Thank you for giving me the opportunity to assist you. I will give the best answer that I can with the information provided.

Hello there,
I am a little confused as to why you filed amended returns for 2006, 2007, and 2008? If you actually received your FERS disability in those years, but then paid it back in future years, you do not amend the prior year return--you deduct the repayment when you pay it.

If the money that you paid back was not subtracted from the 1099R, then you can claim it as a repayment, and deduct it on schedule A, to the extent that it was taxable on prior returns. The procedure is slightly different depending on whether the amount was greater than or less than $3000. There is also the possibility of taking a credit for the tax depending on the situation

See page 90 in http://www.irs.gov/pub/irs-pdf/p17.pdf

Please let me know if I can assist you further.
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3345
Experience: 15+ years tax preparation and tax advice.
Wendy Reed and 5 other Tax Specialists are ready to help you
Customer: replied 2 years ago.
My tax preparer said they had to amend the previous years taxes. Since I didn't understand the reasoning I just let them handle it. I appreciate the answer on filing the repayment on Schedule A since I feel I keep paying taxes on money already taxed. Thank you also for the irs site on page 90.
Expert:  Wendy Reed replied 2 years ago.
I am sorry, I don't agree with your tax preparers actions. Repayment of income is a concept that a good tax preparer should either be familiar with or can easily research to take correct action. Hopefully you can find a new tax person to assist you....You may wish to take your tax returns to a company like that does free reviews of prior tax returns. It will not cost you anything to get them looked at, only if you amend (or re-amend) it may be worth it to straighten out your situation.

Happy New Year to you.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.