J-3200, Spousal Transfer of Income

Revision 09-4; Effective December 1, 2009

A person potentially incurs a transfer penalty by transferring income. Transfers of income include:

  • waiving the right to receive an inheritance even in the month of receipt;
  • giving away a lump sum payment even in the month of receipt; or
  • irrevocably waiving all or part of federal, state or private pensions or annuities.

The date of transfer is the date of the actual change in income, if within the look-back period or during an ongoing month.

Interspousal transfers of income are permitted (for example, obtaining a court order to have community property pension income paid to a community spouse).