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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 585
Experience:  10 years experience
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I retired from the state in June 2011. I received 3 years of

Customer Question

I retired from the state in June 2011. I received 3 years of PLOP to pay off some bills. The PLOP was taxed before I received the money. In 2012 when I did my 2011 taxes, I was again taxed for the PLOP because they combined the PLOP with my other income. Was this OK?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

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Can you maybe re-state the question (express it a little differently)?

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It should ONLY be taxed once ... Now, they may have WITHHELD taxes (like W-2 withholding), which reduces the tax you actually owe at tax time (think of the withholding as a pre-payment of taxes) ... Offsets whatever you actually owe whehn you do your taxes in April for the previous year.

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Is this what you're asking about?

Expert:  Lane replied 1 year ago.

For example ... Lets say I take a plop of 10,000 and tell thme to withhold 10% for taxes

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So I only receive 9000

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Then when I go to do my taxes, the next april, that income DOES get added in and increase my tax BUT the withholding I had done completely OFFSETS that tax.

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Make sense?

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Have I understood your question?

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let me know and we can go from here

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Lane