0

I received a multi-year disability payment from OPM relating to a whistleblower case, and they're saying that I recieved about 75000 for being a disabled federal employee, when it's 5 years of disability payments (fighting the agency) being paid all at once. This is 2 very different tax brackets, so is there an IRS form would I fill out for the escrow payments being put into a secure OPM account that only paid out last year as they held on payments for so long?

Those payments don't take into account that I was a waged federal employee (one of the service branches), not a salaried federal employee either.

  • The future tax bracket would be zero though... – quid Feb 6 at 22:58
  • please explain what you mean as I live in MN, USA – a coder Feb 6 at 23:11
  • If you receive the lump payment today, you pay taxes on the lump today and there isn't future taxation. If you spread the payments over multiple years somehow you would have taxes taken from each year. Even if the top marginal bracket is different it would take a lot more information to know if you would even be better off on a net basis in a multi year arrangement. – quid Feb 6 at 23:17
  • but i wanted the money to be allocated to those years into a holding tank, and the agency I worked refused completely to cooperate with the problem. it took being thrown in jail for the weekend (under warrant without cause) for OPM to say that I have PTSD, and can't work. – a coder Feb 6 at 23:22

Your Answer

By clicking "Post Your Answer", you acknowledge that you have read our updated terms of service, privacy policy and cookie policy, and that your continued use of the website is subject to these policies.

Browse other questions tagged or ask your own question.