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Basic Training |
According to Irs publication 3, BAH, BAS, DLA, MALT, Per Deim, TLE and all the other DITY reimbursements do not count in gross income? Is that right? So the only money they use to calculate tax is my hubby's base pay and enlistment bonus? Cuz if that's true we will be getting the biggest tax return EVER!!
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20 day suspension for disrespect toward the CINC while on warning. 08 Sep 08 Gypsysnipe |
"Generally, if the total reimbursements or allowances that you receive from the government because of the move are more than your actual moving expenses, the excess is included in your wages on Form W-2. However, if any reimbursements or allowances (other than dislocation, temporary lodging, temporary lodging expense, or move-in housing allowances) exceed the cost of moving and the excess is not included in your wages on Form W-2, the excess still must be included in gross income on Form 1040, line 7.
Use Form 3903 to deduct qualified expenses that exceed your reimbursements and allowances (including dislocation, temporary lodging, temporary lodging expense, or move-in housing allowances that are excluded from gross income). If you must relocate and your spouse and dependents move to or from a different location, do not include in income reimbursements, allowances, or the value of moving and storage services provided by the government to move you and your spouse and dependents to and from the separate locations. Do not deduct any expenses for moving services that were provided by the government. Also, do not deduct any expenses that were reimbursed by an allowance you did not include in income." |
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Basic Training |
hmm still confused
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"Has Been 2" Grumpy, Sarcastic, Self-Absorbing, Obnoxious, Intolerable, Pugnacious, Outspoken, Opinionated, Contemptuous, Indifferent, Exacting, Evil, Loner, Lost.... - Missing - *Remains: Not Found... |
Originally posted by spankyspouse:
hmm still confused Originally posted by TaxService: "Generally, if the total reimbursements or allowances that you receive from the government because of the move are more than your actual moving expenses, the excess is included in your wages on Form W-2. However, if any reimbursements or allowances (other than dislocation, temporary lodging, temporary lodging expense, or move-in housing allowances) exceed the cost of moving and the excess is not included in your wages on Form W-2, the excess still must be included in gross income on Form 1040, line 7. reading this as if the reimbursements exceed the amount spent, the overage is counted as income. Yes? Yes. Use Form 3903 to deduct qualified expenses that exceed your reimbursements and allowances (including dislocation, temporary lodging, temporary lodging expense, or move-in housing allowances that are excluded from gross income). If you must relocate and your spouse and dependents move to or from a different location, do not include in income reimbursements, allowances, or the value of moving and storage services provided by the government to move you and your spouse and dependents to and from the separate locations. reimbursements to move me and the kids are counted as gross income? Correct. Do not deduct any expenses for moving services that were provided by the government. Also, do not deduct any expenses that were reimbursed by an allowance you did not include in income. "an allowance you did not include in income? huh? In other words, if you were paid for your move by the Government, you cannot deduct it as an expense. |
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Lead Moderator, Veterans & Disability Forums |
BAH and BAS are not included as taxable income. Per Diem depends on what it is for. If you look at a pay statement you can see what is taxable and what is exempt. I have been out so long I do not know all the alphabet soup of current military pay. |
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20 day suspension for disrespect toward the CINC while on warning. 08 Sep 08 Gypsysnipe |
Based on my understanding, to the extent you have provided receipts, amounts in excess of what you actually prove to have been spent are included in your W-2 wages. Box 12 will have a Code P to reflect the amounts deductible. This should be a no brainer and the proper taxable amounts should be reported to you.
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"Has Been 2" Grumpy, Sarcastic, Self-Absorbing, Obnoxious, Intolerable, Pugnacious, Outspoken, Opinionated, Contemptuous, Indifferent, Exacting, Evil, Loner, Lost.... - Missing - *Remains: Not Found... |
Same, same here.  |
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Lead Moderator, Veterans & Disability Forums |
From the Office of the Sec Def:
Tax Advantages A substantial, but often unseen and overlooked, aspect of military pay is certain built-in tax advantages. Most allowances are tax-exempt. Additionally, certain hardship circumstances will change normally taxable pay into tax-exempt. Tax-Exempt Allowances While all pays are taxable, most allowances are tax-exempt. The primary allowances for most individuals are BAS and BAH, which are tax-exempt. Conus COLA is one allowance that is taxable. A law change mandated that every allowance created after 1986 would be taxable. CONUS COLA was authorized in 1995 and, thus became, the first taxable allowance. Tax savings can be significant as BAS and BAH averages over 30% of a member's total regular cash pay. In addition to being tax-exempt from Federal and State taxes, these allowances are also excluded from Social Security taxes. In addition there are special rules for combat zones. |
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MODERATOR Military Life, Spouses & Community If you want something said ask a Man; but if you want something done, ask a Woman! Margaret Thatcher  |
Your DITY pay will be taxed, it was taxed when it was paid to you so that income will count. You should receive a separate W2 for it.
The basic rules are Pay is taxable, Allowances are not. If can do a basic tax return you can go online and do it through many programs that are free for the military, listed on IRS website. Or you can go to the base and sign up for the free tax service called VITA that all the bases offer. |
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Basic Training |
I've always done my taxes online for free, and I would love to use VITA but my hubby wants to pay H&R Block to do the taxes, since I guess they guarantee the preparation... I HATE paying to get taxes done, but since this is the first time for all this for us, I think we do need a professional cuz my head is spinning! lol |
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20 day suspension for disrespect toward the CINC while on warning. 08 Sep 08 Gypsysnipe |
VITA is an excellent resource. You may also use "DELETED" (or other online resources) to file a free return. If you are uncomfortable with the results, then see a professional. As long as you provide the basics, you should fare well. Running the "ALERTS" on "DELETED" will enable you to find errors and anything you may have overlooked.
Edited for Advertising-USMCvet This message has been edited. Last edited by: usmcvet, |
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20 day suspension for disrespect toward the CINC while on warning. 08 Sep 08 Gypsysnipe |
BTW, most tax programs are not yet up and running. IRS was to have opened on January 11th but due to congress late action in passing new tax laws and the inablity of most agencies, inside 'n' outside of government, to update their programs quickly enough, there will be many delays. IRS has said it may take seven (7) weeks in order to be able to function properly.
Having said that, you may download a preliminary version of "DELETED" to prepare a return based on what most filers will need to file accurately for 2007. PATIENCE WILL BE THE BYWORD THIS YEAR!!!=  Edited for advertising-USMCvet This message has been edited. Last edited by: usmcvet, |
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Lead Moderator, Veterans & Disability Forums |
I also like "DELETED" . I am thinking of buying the business pack because I am tired of trying to get my return done on time. I have a Sub S and I can do it in less time than it takes to get him moving. I have always liked their software.
Edited for advertising-USMCvet This message has been edited. Last edited by: usmcvet, |
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20 day suspension for disrespect toward the CINC while on warning. 08 Sep 08 Gypsysnipe |
Be careful!!!! "DELETED" does provide a program for the preparation of S-Corporation returns. However, IT DOES NOT accomodate all states. Some of the states are quite complex so you may wish to continue on with professional services. I'm often late in filing corporate returns, due to the nature of the business and the complexity of comprehending book entries, or missing information. When the season is in full swing, although I book every hour, on the hour, from 9am to 9pm, I often don't finish 'til 2am or 3am just in dealing with returns of the day. Out of fear of completing a return which may not be accurate, there are many such business returns for which I file extensions. Those returns are due on March 15th and not at the same time as other returns.
It is likely you should retain professional services, considering that is is easy to foul up and your time might be better spent in being expert in what your business, and the production of income, embraces!!!- Good Luck!!!- Edited for advertising-USMCvet This message has been edited. Last edited by: usmcvet, |
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Lead Moderator, Veterans & Disability Forums |
I have a degree in accounting with a specialty in Tax. I just run a computer company. I sometimes think I am better equipped than my accountant, that is a long story. He tends to get sloppy.
As of now we have the books done for 2007, except for some last minute items like SEP-IRA contributions. Also, I am semi-retired - I am SC vet and am supposed to be totally retired, but that is boring. |
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20 day suspension for disrespect toward the CINC while on warning. 08 Sep 08 Gypsysnipe |
I'll buy that!!!-
I'm almost 80 years old (been in practice for 43 years) and wouldn't think of retiring unless forced to do so by dementia (or some other ailment)!!-You might want to use someone who must keep up with the educational requirements (ea/cpa) so that you can intelligently discuss your filing. There are also those, without letters, who are as well (or even better) equipped. Sometimes what applies to barbers can apply to accountants. "Barbers (generally) do no cut their own hair"!!!!- |
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Lead Moderator, Veterans & Disability Forums |
I do do that. Last two years I got frustrated by mistakes. I probably will do, and then have them redo.
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20 day suspension for disrespect toward the CINC while on warning. 08 Sep 08 Gypsysnipe |
I enjoy that!! I'd rather deal with such matters before IRS gets the chance to challenge them. It's surprising what clients come up with upon review of their returns!! I expect many/most people may not even read the return before filing it. I shudder at some of the errors I've made thru the years. Fortunately, my clients are not into vengence!!!-
 I do offer to pay any penalties if they are charged due to my rare errors/omissions!!= I deal with complex issues and, if I believe they are capable, I encourage clients to prepare their own returns. There is no reason why MOST Americans can't do their own returns but as it is with those who still rely on others to shine their shoes, so it is with many of those who rely on professional preparers!!= |
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MODERATOR Military Life, Spouses & Community If you want something said ask a Man; but if you want something done, ask a Woman! Margaret Thatcher |
H&R Block often do the same course as VITA. Personally I use taxslayer.com it is free and done it for years. Walked me through everything and didn't have any problems or questions. Even did it when we had a mortgage and the moved. So it is possible.
As for H&R Block to be honest we will never, ever go there again. They screwed us royally. They did all this stuff, said we would get $80 back but in reality we owed the IRS $800! Had our address right in the paperwork but somehow it got changed and so we never received noticed by the IRS that we owed them till awhile later. We had to pay $200 for all of this too. Then the next year we went and did it at VITA and the person reviewed the return from before. He was outraged at what they had done to us. He was ready to  for us. |
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