"...2019 list of all 50 states that exempt (or don’t) all or a portion of military retirement pay. The laws differ depending on which of the 50 states you live in and some state tax laws are more complex than others. Depending on the state you may pay no income tax whatsoever, or you may find your military retirement pay is exempt from taxation up to a certain dollar amount.
Quick math: 9 states don’t have a personal income tax, 8 states fully tax military retirement pay, 20 states don’t tax retirement pay and 13 tax a portion...."
Showing posts with label military retirement pay. Show all posts
Showing posts with label military retirement pay. Show all posts
Jan 23, 2019
Which States Tax Military Retirement Pay?
Jan 17, 2019
VA Disability and Retirement Pay Bill Re-Introduced
"...Military retirees could keep both their retirement pay and VA disability compensation if a renewed bipartisan push becomes law.
Introduced by Reps. Tulsi Gabbard (D-Hawaii) and Gus Bilirakis (R-Fla.), the Retired Pay Restoration Act would allow veterans receiving 40 percent or lower rates of a service-connected disability to keep all of their income streams. ..."
Jan 9, 2019
Government Shutdown and Military Retirement Pay
The Department of Defense, including DFAS, is funded through Sept. 30, 2019.
All military service members, military retirees and annuitants, and DoD civilian employees will be paid as scheduled.
Source: https://www.dfas.mil/
Aug 2, 2016
Radical Proposal for Division of Retirement Pay in Divorce
"...Former spouses might get a smaller share of a military member's monthly retirement pay if Congress passes legislation that some are describing as a “radical rewrite” of the law regarding the division of marital assets when military couples divorce.
It would require state courts to award payments to ex-spouses of service members based on the rank and years of service at the time of divorce — not the rank and years of service at the time of retirement, as is currently the case. In some cases, it will mean the spouse will get a smaller share of the service member’s monthly retirement.
“We’re trying to protect warriors out there fighting for our country..."
Read more at militarytimes.com
Jan 28, 2014
COLA Cuts Get Push Back from Top Enlisted Retirees
"...“You don’t join the military to get rich. There are a lot of sacrifices. There are PCS moves. There are bullets flying overhead. We’re still fighting a war, and now we are talking about reducing the COLA? I don’t get it,” recently retired Chief Master Sergeant of the Air Force James Roy said.
In interviews, Roy and the others denounced the reductions, calling them unfair to the average enlisted troops who often struggle to find decent-paying jobs when they leave the service.
The six senior enlisted leaders said they decided to speak out after four retired generals and flag officers issued a statement Jan. 13 voicing support for the cuts..."
Read more at Marine Corps Times
Feb 15, 2013
Should Military Retiree Pay be Equal for All?
"...There was an interesting article in last week’s Washington Post concerning the unaffordability of the all-volunteer military. Some of what was written was not a surprise: the current retirement pay beginning at 50 percent for the rest of retired active duty service members lives as well as health care is under scrutiny or already changing...
Should benefits be equal for someone who has seen combat vs. someone who has only had an office or stable career in the military with no deployments?..."
Jan 21, 2013
Estimate Your Retirement Pay
The Department of Defense uses a multi-step formula to compute your retired pay. The amount generally is based on your length of service or your disability percentage. Factors such as the year you entered service and your retirement type also affect your pay.
Retired Pay Formula
All of the retirement plans determine your monthly pay by multiplying your retired pay base by a service percentage:
Retired Pay Base
x Service Percent Multiplier
= Gross Retired Pay
Your gross retired pay is rounded down to the nearest dollar.
What is My Retired Pay Base?
Final Pay:
If you entered active or reserve military service before September 8, 1980, your retired pay will be based on your final basic pay.
High-3:
If you entered active or reserve military service after September 7, 1980, your retired pay base is the average of the highest 36 months of basic pay. If you served less than three years, your base will be the average monthly active duty basic pay during your period of service.
What is My Service Percent Multiplier?
ACTIVE DUTY
The longer you stay on active duty, the higher your retirement pay. Each year of active duty service is worth 2.5 percent toward your service percent multiplier.
A retiree with 20 years of service would have a service percent multiplier of 50 percent:
2.5% x 20 years = 50%
RESERVE
Reserve service is “converted” to active service by dividing retirement points by 360.
7200 points divided by 360 = 20 years of active duty service
2.5% x 20 years = 50%
CSB/REDUX
If you retired under CSB/REDUX, your retired pay multiplier will be reduced by 1 percent for each full year. This reduction remains in effect up to the age of 62 when your retired pay will be restored to the same amount paid under the High-3 System.
DISABILITY RETIREMENT
The multiplier for disability retired pay is either:
2.5 percent for each year of service, or
disability percentage assigned by the service at the time you retire
Either way, the multiplier is limited to 75 percent by law. If you are on the Temporary Disability Retired List, the minimum multiplier is 50 percent while on the TDRL.
DFAS uses the method that results in the largest payment. But if you’d like to choose the other method, please send DFAS your request in writing.
Dec 30, 2012
Tax Exemption Bill for Military Retirement
"...Texas has no individual income tax. Colorado has a tax exemption for a portion of military retirement pay.
"While it doesn't seem like that big a deal, it adds up," Barrera said.
Tax reform is one the top issues on the minds of some lawmakers and Gov. Dave Heineman as the 2013 legislative session draws near. Heineman will release his plan in January, but has talked about the possibility of eliminating state income tax completely.
Omaha Sen. Bob Krist -- a retired military man himself -- said both retired military and retired folks in general who get Social Security income are people who generate revenue in the state. He will introduce a bill in January to exempt military retirement pay, military civilian retirement pay and Social Security benefits from state income tax..."
Apr 12, 2012
Increase Federal Tax Withholding on Military Retirement Pay
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