Follow
Share

My brother recently admitted into a Healthcare facility, is having difficulty getting dfas to stop withdrawing federal taxes from his pension. The federal deduction is a required payment toward his monthly healthcare liability, especially since his liability is based on his gross income and not his net. Currently, the family is paying the difference, long term this cannot continue.
What do we need to do to get or what number do we need to call for assistance with this matter?

This question has been closed for answers. Ask a New Question.
Find Care & Housing
Death and taxes are inescapable. Consult a tax advisor to prepare his end-of-year tax submission "as of" his current projected income, expenses, and federal taxes paid. Logically, it is the end-of-year taxes to be paid or to be refunded that matter, not the monthly amount deducted. If he cannot afford to be private pay in a facility, investigate VA equivalent facilities.
Helpful Answer (0)
Report

Wow, sorry I don't have an answer but I did not know it worked that way. This is scary.
Helpful Answer (0)
Report

he will still owe taxes on his pension when he files, whether they are deducted or not. However, if he isn't withdrawing or paying estimated taxes when it comes times to file, he will be hit with a penalty for underpayment . So one way or another he has to pay taxes. My husband is a veteran and because they weren't withholding enough taxes from his pension he had to change it. You'll need to call the accounting office at the base near you or DFAS.
Helpful Answer (0)
Report

Are you talking about a retirement pension or a disability based veterans pension. They are entirely different. One taxable and the other isn't. That would be helpful to know.
Helpful Answer (1)
Report

This is what I did for my father: contact DFAS and get a W4 for your brother to sign. help your brother get his log-in & password set up if he does not have already. Or try phone number 1.888.332.7411 for assistance. When your brother signs the form, make sure it states section 7 is 'exempt'. Fax to 1-888-469-6559. Your brother will hear back within 30 days. Also remember to repeat this every January as the FITW exemption process is not automatic. I hope this helps and please ask a tax advisor if you have questions.
Helpful Answer (1)
Report

Hey Harpcat, a retirement pension or a disability based veterans pension. One taxable and the other isn't. Which is which? Thanks!
Helpful Answer (0)
Report

Yes, as many have said here, you'll have to know if your working with a disability or retirement VA pension. Then see a good CPA.
Helpful Answer (0)
Report

You're working
Helpful Answer (0)
Report

This question has been closed for answers. Ask a New Question.
Ask a Question
Subscribe to
Our Newsletter