Tuesday, March 13, 2012

FROM THE E-MAIL SECTION: Your $6,000.00 Police/Fire Death benefit.... Is no longer $6,000.00 It's now $4,800.00 after the tax deduction


I think most of us have thought that there is a $6,000.00 death benefit that the surviving spouse or designated beneficiary receives upon the Chicago police department insurer's death. Not any more. A short time ago, a IRS change was made that mandates that the Chicago Police Pension Board takes out 20% of the $6,000.00 and submits it to the U.S. GOVERNMENT. That leaves the designated beneficiary with about $4,800.00 in actual dollars. I spoke with an employee of our pension staff Monday and he said that depending on your IRS tax rate, the beneficiary may get some of that $1,200.00 back in the form of a tax over payment, or not. The beneficiary will receive a form 1099 indicating the withholding and it will be their responsibility to include the form 1099 from the IRS/Pension Board when filing their federal taxes. He could not give a reason as to why the withholding was increased from ZERO to 20% other than it was a change mandated by the IRS. You must remember, the GOVERNMENT is NOT your friend with the current administration. If you have any questions, call the Chicago Police or Chicago Fire Department Pension Board office. If the person you speak to has no knowledge of this change, ask to speak to some one who does actually know, the first person I spoke to was not aware of this and had to ask some one else in the office.

8 comments:

Anonymous said...

Many people that work in the Pension Board Office don't have a clue!

Right Kenny?

Mark12A said...

The IRS is turning into Obama's Gestapo and SS, all in one.

Anonymous said...

Well as long as the money goes to a good cause like more wellfare for illegals.

I Voted For Obama said...

Obama voters need that money. Quit crying about it.

Anonymous said...

Actually Kenny is pretty sharp....when he's sober.There lies the problem, he hasn't been sober in 20 year.

Anonymous said...

The first of the Obamacare changes.

I've been telling folks that Obama wants you to die so they can seize the assets and benefits you leave behind.

Anonymous said...

I don't know what your all bitching about. I'm proud that when I die my dollars will help support duke and dutchess in living their royal lifestyle. Steady diet of flamin hots, purple drink, and hatred.

Anonymous said...

When Tony Martin gets elected he will fix this injustice.