LauraSummers
New Member
- Jurisdiction
- California
This has been a very stressful situation I was made aware of while moving my mom. I found a letter of intent to levy her bank account from the state of California. My mother who has severe dementia documented and diagnosed by several doctors receives disability retirement through office of personnel management. She was a federal civilian employee for 20 years. She is currently 66. She has been receiving it since 1997. California State is currently threatening to levy her bank account stating she owes taxes on this. I thought CA didn't tax State or Federal disability? She actually settled a lien on her home for the same issue. She also receives a federal survivors benefit via the office of personnel management from my late father who passed away in 1999. He was also a civilian federal employee for over 20 years. She has received this since 1999. Is this taxable in the state of California? After minimum retirement age? Even CA State Tax Franchise Board is now looking into whether they made a boo boo. Would the pay out from the lien on her home be recoverable?