Military Separation Pay

[Lyrpa]

What is the name of your state (AZ)?


Hello I'm needing some help finding a Court Case regarding Separation Pay being taxed at 28%. I've done some googling and found that a few people back in the early 00's were able to procure some court case that stated Separation Pay couldn't be taxed at 28%. Due to some jacked up appeals my husband was forced to separate and now as a result we got taxed at 28%.

Does this ruling still exist?

 

[LdiJ]

What is the name of your state (AZ)?


Hello I'm needing some help finding a Court Case regarding Separation Pay being taxed at 28%. I've done some googling and found that a few people back in the early 00's were able to procure some court case that stated Separation Pay couldn't be taxed at 28%. Due to some jacked up appeals my husband was forced to separate and now as a result we got taxed at 28%.

Does this ruling still exist?

If you are going to try to take a tax position on the income, then you really need a tax professional handling the return who can do the necessary research for you.

Most of the volunteers here do not have time to do research for free, during the tax season.

 

[HappyWanderer]

While I haven't researched the issue, I bet the OP is talking about withholding and not tax.

 

[Lyrpa]

We do have a tax guy so I'll definatly pose the question to him the other questions regarding this court case had been posted on this forum..but back in '00-'02 and I can't seem to find them on the search engine. The income was taxed as additional income which the case seemed to say it was not.

Thank you for your assistance though I will definatly put the question to our accountant.