Court-Ordered Benefits

You can change your Federal tax election at any time by signing into your online account or by contacting us.

Your 1099-R tax form will reflect a reduction in your gross annuity after your retirement application is finalized based on the amount of apportionment that you pay your former spouse. There will be a footnote on the 1099-R stating the amount of the apportionment paid to your former spouse for the year.

Because your annuity is subject to a court-ordered apportionment, OPM does not calculate the taxable portion of your annuity. The 1099-R form will show Unknown in the Taxable Amount box.

You may want to speak with a representative at the IRS or a tax advisor to help you calculate the tax-free portion of the calculation. Current tax tables for this year are available in IRS Publication 15. You can also call the IRS toll free for tax advice at this number: 1-800-829-1040 (agent).

Your former spouse must report the amount of apportionment they receive as taxable income and is required to pay taxes on this income. Apportionment payments cannot be used as alimony deductions on a tax return.

It is your responsibility to make sure enough federal income tax is withheld from your annuity and to check the amount of tax withheld early in the year to make sure you are paying the correct amount.