TSP and taxes


Q. I retired from the federal government (Department of Veterans Affairs) on Jan 31, 2018. I did 32 years and retired at 56. I withdraw all my TSP funds and, of course, federal tax was taken out. When I file my 2018 taxes, do I pay the NYS/city taxes? I don’t have enough to itemize.

A. Yes. The money that was taken out of your TSP distribution was a deposit against your federal tax liability. You will pay your federal, state and local income taxes when you file your tax returns for the year.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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