Client was divorced in 2020. He pays his ex half his VA pension and gets 1099r for full amount?

[JONI9611]

Client was divorced in 2020. His ex-wife was suppose to get half of VA pension in the divorce. VA finally got the paperwork done in January of this year 2023.He has been paying her half for two years and getting a 1099R for the total amount. Can he give her a 1099 for what he gave her? If he did how would he show the expense on his return?

[BobKamman]

VA benefits are nontaxable but no 1099 is issued for them.  Do you mean it's a Defense Finance and Accounting Service pension for his military service?  

[IRonMaN]

Or it could be Virginia.  Or it could even be an abbreviation for Vern's Artichokes.

[BobKamman]

No way.  Virginia and Vern's aren't run by the federal government.  

[sjrcpa]

Did he get a QDRO?

Or does the settlement agreement just say pay her 1/2?

VA just got the paperwork correct now. Is that because your client didn't give it to them promptly?

[IRonMaN]

Or the client’s attorney dropped the ball

[sjrcpa]

Sadly, I have seen this happen before.

[BobKamman]

The court order to divide military retirement must meet very specific requirements, otherwise DFAS will not process it. And note that while many attorneys may refer to the order as a QDRO, a military retirement is not a qualified pension under section 401(a) of the Internal Revenue Code, so a QDRO is neither needed, nor is it sufficient.

https://www.military-divorce-guide.com/military-retirement/direct-payment-military-retirement-dfas#:

[sjrcpa]

I think OP means Virginia and not the Veterans Administration. But she hasn't come back to tell us.

@JONI9611