- 5 -5 Petitioner has received a portion of Kenneth's disposable retired pay since their divorce. She has not included such amounts in her gross income as reported on her Federal income tax returns for any taxable year up to and including 1991. As reported on his 1991 Form 1099-R, the taxable amount of Kenneth's military retirement pension for 1991 was $22,776. The amount withheld for Federal income tax was $2,561, so the after- tax distribution was $20,215. On his 1991 Form 1040, U.S. Individual Income Tax Return, filed jointly with his wife Faye, Kenneth included in his taxable income the amount of $22,776. He also reported as Federal income tax withheld, and credited against his total tax, the amount of $2,561. On line 29 of the return, Kenneth deducted as alimony paid the amount of $10,107-- 50 percent of $20,215, rounded down--and identified petitioner by Social Security number as the recipient. Petitioner did not include the $10,107 distribution in her gross income for 1991 or otherwise report it on her 1991 Form 1040. OPINION Petitioner concedes in her posttrial brief that the portion of Kenneth's disposable retired pay she received in 1991 is "inherently" taxable income. However, petitioner argues that based upon the language of the Settlement Agreement and 10 U.S.C. section 1408(a)(4) (1994), as amended and in effect during 1991, such income is not taxable to her because she received it taxPage: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011