IRS cross check & 1099

Discussion in 'Countable Income' started by Cathy, Mar 16, 2015.

  1. Cathy

    Cathy Newbie

    Almost there with the app !
    Given that the VA cross checks with the IRS, parent does not file taxes but I understand there are entities filing 1099's.
    So, in 2014 there will be a 1099 from a brokerage company showing a certain amount of money associated with short term profit from a stock/option. This amount was a one time event and the specific amount or any specific amount, if any, is not guaranteed to happen again in 2015.

    Obviously 'assets' is entire amount in the entire account, etc. today and the 'projected income' is unknown/not guaranteed to be anything. BUT someone at the VA is going to see a dollar figure on the 2014 1099 from the brokerage company(which I understand will specify short term versus long term) and wonder 'where did that come from and will it continue in 2015'. I am tempted to send the entire 16 page brokerage detail that generated that 1099. Should I do that ? I want to be proactive and not have the app kicked back. Thoughts/advice ? Thank you.
     
  2. vetadmin

    vetadmin Administrator Staff Member

    Cathy,

    We can't really advise you on this. It is often more prudent to include, but it may raise more questions rather than answering them from the VA's standpoint.
     
  3. Cathy

    Cathy Newbie

    Yes, thank you. At face value, I would simply indicate the dollar value of my parent's account under Net Worth(sec. VII) and only SS income and interest from interest bearing accounts(only 2 sources of steady predictable income) under Gross Monthly Income sec. VII and Expected Income(sec. IX). I would have left it at that if I hadn't read about cross checking. I could indicate in a Statement in Support of Claim that any 1099 info (dollar amounts)from a brokerage in a previous year is from a "stand alone non-recurring trade transaction(and without any predictability is not expected income) and the appropriate Net Worth section line item reflects the current( to date) value of the account". And not send the 1099. Does that sound like it would raise or answer questions ?
     
  4. vetadmin

    vetadmin Administrator Staff Member

    I think that is the better plan of action.
     

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