former spouse military retirement pay and taxes?
A friend of mine is receiving former spouse military retirement pay. She is not a US citizen and moved back to her home country. Does anyone know what that means in regards to paying/owing Federal/State income tax?
Public Comments
- Yes. She aint getting any!
- From my best knowledge, the government will continue to take out the taxes. But you will be able to file and get the taxes back at the end of the year. Also, you have to report the retirement to her native country as foreign income. So it is still going to be taxed, either by the US or her native country.
- She would still owe federal income tax on it, but not state.
- If she was asked to file a W-9, she needs to update it to a W-8 Ben form once she's no longer considered a resident alien. That way, the appropriate taxes can be withheld before she gets the money. Boston, how is this *not* US source income??? If the poster is a non-resident alien and this is US source income, she would file a 1040NR. If this was alimony, he'd have to withhold 30% up front. If this was SSA benefits, the US governent would withhold 22.5% (30% of 85%). The only way she wouldn't owe taxes would be if this was considered a split of marital property (meaning the husband paid all taxes). So...it is going to depend on the tax treaty as to whether the retirement pay is taxed or not....
- If she's a US citizen or lawful permanent resident she is still subject to US tax law and will pay Federal income taxes on it. If she is not a citizen or LPR then it's not taxable by the US. Her home country can and probably will tax it however.
