Midshipman Fee Refund

Discussion in 'Merchant Marine Academy - USMMA' started by WESKI, Nov 11, 2011.

  1. WESKI

    WESKI Member

    Joined:
    Jun 9, 2006
    Messages:
    38
    Likes Received:
    1
    DS received a certified letter the other day regarding the refund of Midshipman fees from several years ago. It amounts to over $4,000! In the letter, it says that there may be tax ramifications. Any clue as how this might work? I am thinking that, as parents, we paid the fees. Since this was several years ago, we may have taken a tax credit for it. I have to check. Thus, we may have to file adjusted tax returns & pay more in taxes for years past? Or, if he deposits the funds, will it be income to him, even though it is reimbursement for fees paid? 1099 forms? Any thoughts here? We aren't involved with the parents assns anymore. Money is not in hand yet, and much as cash is nice, this could get complicated.
     
  2. bugsy

    bugsy Member

    Joined:
    Nov 22, 2010
    Messages:
    202
    Likes Received:
    0
    Gatta wait to see if you get a 1099. I wouldnt act until i got formal notification of taxable amount.
     
  3. jasperdog

    jasperdog Member

    Joined:
    Jul 25, 2009
    Messages:
    1,032
    Likes Received:
    17
    If your accountant gave you similar advice as ours, then it's likely when you check you'll find you did not take a tax credit for those fees as because of the way they were described our accountant said it was hard to determine how much of the fees were tax deductable and as such it really wasn't worth taking in our case.
     
  4. KP2013dramamama

    KP2013dramamama Member

    Joined:
    Jul 11, 2009
    Messages:
    554
    Likes Received:
    3
    CHECK THE EXPIRATION DATE ON THE CHECK AND GET GOING ON FIGURING OUT HOW TO TAKE CARE OF THIS. The last thing you/your ds want/s to do is lose the ability to cash the check for waiting on the accountant.
     
  5. WESKI

    WESKI Member

    Joined:
    Jun 9, 2006
    Messages:
    38
    Likes Received:
    1
    Has anyone received a check/payment yet? Wondering how long it takes them to process on their end and what, exactly, you get on/with the check.
     
  6. KPMum2012

    KPMum2012 Parent

    Joined:
    Nov 17, 2008
    Messages:
    359
    Likes Received:
    0
    DD's refund was deposited in ner Navy Fed. Credit Union account about a week ago.
     
  7. jasperdog

    jasperdog Member

    Joined:
    Jul 25, 2009
    Messages:
    1,032
    Likes Received:
    17
    DS received his directly deposited into his checking account at least a week ago as well.
     
  8. OldAirForce

    OldAirForce Member

    Joined:
    May 9, 2007
    Messages:
    76
    Likes Received:
    0
    We had a check arrive today. He said there was an option to actually have a check cut.
     
  9. WESKI

    WESKI Member

    Joined:
    Jun 9, 2006
    Messages:
    38
    Likes Received:
    1
    For the record, direct deposit made Nov. 28, exactly 3 weeks after notification. Still wondering about 1099, but it's supposed to be a reimbursement, and as such, should not trigger a 1099 according to my accounting sources. But you never know and will have to wait until Feb. 1 or so to confirm.:rolleyes:
     

Share This Page