I have a client who moved here to Texas from Illinois. He had teacher retirement. He collected from his own retirement and also received retirement from his wife as a death benefit.
My client moved to New Jersey at the end of 2007 to be with his daughter. He passed away 03/30/2008.
Now the point to my little story. I have received the tax info from his daughter to prepare his final return. There is a letter enclosed regarding the retirement income from Illinios he received.
LETTER FROM TEACHES' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS.
"Notification of Unrecovered Previously Taxed Contributions."
"Annutiy payments contain taxable and nontaxable amounts. The nontaxable portion is a result of the allocation of the annuitant's previously taxed retirement contribution to individual annuity payments. The nontaxable percentage remains constant until previously taxed contributions are completely recovered.
Unrecovered contributions that were previously taxed total : 482.14.
These unrecovered contributions are not refundable by the TRS and may be claimed as a deduction on the deceased member's final federal tax return. Please refer to IRS pub 575."
Does anyone know what to do with this money? Any help would be appreciated.
My client moved to New Jersey at the end of 2007 to be with his daughter. He passed away 03/30/2008.
Now the point to my little story. I have received the tax info from his daughter to prepare his final return. There is a letter enclosed regarding the retirement income from Illinios he received.
LETTER FROM TEACHES' RETIREMENT SYSTEM OF THE STATE OF ILLINOIS.
"Notification of Unrecovered Previously Taxed Contributions."
"Annutiy payments contain taxable and nontaxable amounts. The nontaxable portion is a result of the allocation of the annuitant's previously taxed retirement contribution to individual annuity payments. The nontaxable percentage remains constant until previously taxed contributions are completely recovered.
Unrecovered contributions that were previously taxed total : 482.14.
These unrecovered contributions are not refundable by the TRS and may be claimed as a deduction on the deceased member's final federal tax return. Please refer to IRS pub 575."
Does anyone know what to do with this money? Any help would be appreciated.