DoD Announces Policy Change on Transfer of Post-9/11 GI Bill Benefits

Via DoD Announces Policy Change on Transfer of Post-9/11 GI Bill Benefits:


CTMCS (ret) Summary: DOD has changed policy to increase retention, mandating service members must be under 16 years TAFMS (or Selected Reserve), to elect a transfer to spouse or kids,  and must have 4 years service obligation remaining in order to transfer benefits.

The Defense Department issued a substantive change today to its policy on the transfer by service members in the uniformed services of Post-9/11 GI Bill educational benefits to eligible family member recipients.

Effective one year from the date of this change, eligibility to transfer those benefits will be limited to service members with less than 16 years of total active-duty or selected reserve service, as applicable.

Previously, there were no restrictions on when a service member could transfer educational benefits to their family members. The provision that requires a service member to have at least six years of service to apply to transfer benefits remains unchanged in the policy.

Focus on Retention

“After a thorough review of the policy, we saw a need to focus on retention in a time of increased growth of the armed forces,” said Stephanie Miller, director of accessions policy in the Office of the Secretary of Defense. “This change continues to allow career service members that earned this benefit to share it with their family members while they continue to serve.” This change is an important step to preserve the distinction of transferability as a retention incentive, she added.

If service members fail to fulfill their service obligation because of a “force shaping” event — such as officers involuntarily separated as a result of being twice passed over for promotion or enlisted personnel involuntarily separated as a result of failure to meet minimum retention standards, such as high year of tenure — the change will allow them to retain their eligibility to transfer education benefits even if they haven’t served the entirety of their obligated service commitment through no fault of their own.

All approvals for transferability of Post-9/11 GI Bill continue to require a four-year commitment in the armed forces and, more importantly, the member must be eligible to be retained for four years from the date of election, officials said.

The policy affects service members in the uniformed services, which includes the U.S. Coast Guard as well as the commissioned members of the U.S. Public Health Service and National Oceanic and Atmospheric Administration.

editor: emphasis added 

Combat-injured veterans tax relief

undoing the added insult to injury

Of all the things that politicians do that gets people’s dander up,  then-President Obama signed into law  a bill that rights a wrong for combat-injured veterans.   For more than a hundred-thirty thousand  veterans whose combat injuries ended their careers,  the government has ended taxing their severance pay.  The veterans affected served from 1991 (Desert Storm) through the present.

The IRS bulletin :

The Combat-Injured Veterans Tax Fairness Act of 2016, enacted December 2016, allows certain veterans who received lump sum disability severance payments additional time to file a claim for credit or refund of an overpayment attributable to the disability severance payment. The law directed the Secretary of Defense to identify disability severance payments paid after January 17, 1991, that were included as taxable income on Form W-2, Wage and Tax Statement, but were later determined to be nontaxable and to provide notice of the amount of that payment. The Department of Defense is mailing letters to affected veterans (letters 6060-A and 6060-D) in July 2018.

What this means for some veterans

Veterans discharged from military service due to medical disability may receive a one-time lump sum severance payment. Disability severance pay is taxable income unless the pay results from a combat-related injury or the service member receives official notification from the Department of Veterans Affairs (VA) approving entitlement to disability compensation.

Anyone who received a disability severance payment that was taxed and determines later that the payment qualifies under one of the rules above can file a claim for credit or refund for the tax year in which the disability severance payment was made and was included as income on a tax return.

For veterans who received a lump sum disability severance payment after January 17, 1991, the Combat-Injured Veterans Tax Fairness Act of 2016 may provide additional time to claim a credit or refund for the overpayment attributable to the disability severance payment.

What you need to do

You must complete and file IRS Form 1040X, Amended U.S. Individual Income Tax Return, for the tax year the disability severance payment was made carefully following the instructions in the notice mailed by the Department of Defense in July 2018. You must mail the claim generally by the later of:

  • 1 year from the date of the Department of Defense notice, or
  • 3 years after the due date for filing the original return for the year the disability severance payment was made, or
  • 2 years after tax was paid for the year the disability severance payment was made.

If you did not receive the notice from the Department of Defense and you received a disability severance payment after January 17, 1991, that you reported as taxable income, you can still file a claim as long as you attach the necessary documentation to your Form 1040X. You may contact the Defense Finance and Accounting Services to obtain your documentation for submission with the required Form 1040X. See the FAQs for additional information.

Text of the 2016 law:

https://www.warner.senate.gov/public/index.cfm/2016/12/senate-passes-bill-to-end-taxation-of-combat-injured-veterans-severance-payments

Ask the Chief: taxes

Retirement pay, states of residence and taxes

 

Edited and sourced  from military benefits :

I believe that we all should contribute what is fair to help our military and contribute to the efficient management of our nation.  That said, we all know that taxation is out of control in many states, without regard to the military service retiree’s sacrifice during their career.   This information should assist a veteran with decisions about where to spend retirement.

Compiled for 2018, a list of all 50 states that exempt (or don’t) all or a portion of military retirement pay.  When and where you settle, after retirement, is up to you, but having some current information should help you with “Uncle’s” hand in your pocket.

Summary:

  • NO personal income tax: 9 states
  • Full military retirement pay subject to tax: 8 states
  • NO tax on military retirement pay: 20 states
  • Partial tax on military retirement pay: 13

 

No state income tax ( no tax on retirement pay):

Alaska
Florida
Nevada
New Hampshire (dividend and interest taxes only)
South Dakota
Tennessee (dividend and interest taxes only)
Texas
Washington
Wyoming

8 States That Do Not exclude Military Retirement Pay from tax:

California
Montana
New Mexico
North Dakota
Rhode Island
Utah
Vermont
Virginia

20 States Don’t Tax Military Retirement Pay:

Alabama
Arkansas
Connecticut
Hawaii
Illinois
Iowa
Kansas
Louisiana
Maine
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
New Jersey
New York
Ohio
Pennsylvania
West Virginia (as of 2018)
Wisconsin

13 States With “Special Provisions” Or Other Consideration For Military Retirement Pay

Arizona – Military retirement pay may be excluded from state taxation up to $2,500.
Colorado – Depending on age, up to $24,000 of military retirement pay may be exempt from state taxes.
Delaware – Taxpayers up to the age of 60 may exclude up to $2,000 of military retirement pay, military retirees aged 60 or older exclude up to $12,500.
District of Colombia – Military retirement pay may be excluded from state taxation up to $3,000 for individuals 62 or older.
Georgia –  has a provision for any retirement income including military retirement pay. Taxpayers who are 62 or older, or permanently and totally disabled regardless of age, may be eligible for a retirement income adjustment on their Georgia tax return. Up to $35,000 ages 62-64 and $65,000 for 65 and older.
Idaho – Retirement benefits to a retired member of the military 65 or older, or disabled and age 62 or older are excluded from state taxes. Such deductions must be reduced by retirement benefits paid under the Federal Social Security Act or the Tier 1 Federal Railroad Retirement Act. The total maximum deductions vary each year.
Indiana – Military retirees may deduct the lesser of actual retirement pay or $5,000, whichever is less. Certain conditions may apply.
Kentucky – All military retirement pay is exempt from state income tax for those who retired prior to 1997. For those who retired after 1997, military retirement pay is subject to state tax when the pay exceeds $41,110.
Maryland – Military retirees don’t pay state income taxes on the first $5,000 of their retirement income. Those over age 65, or who are totally disabled, or who have a spouse who is totally disabled, receive additional state income tax breaks which may vary from year to year.
Nebraska – Retirees must choose (within two years of the retirement date) a seven-year exemption option of 40% or a lifetime exemption option of 15% starting at age 67.
North Carolina – Military retirement pay may not be taxed at all if it meets certain requirements including if the veteran was “vested in the retirement system” for five years as of August 12, 1989. Otherwise, tax exemptions may be applicable up to $4,000 for single returns and $8,000 for joint returns.
Oklahoma – Military retirement pay is exempt either up to 75% or $10,000, whichever is greater, but cannot exceed federal adjusted gross income.
Oregon – Military retirees may qualify for a “federal pension subtraction”. Those considered “special-case” Oregon residents will have their military retirement pay taxed as regular income.
South Carolina – Military retirees with a minimum of 20 years of active duty may exempt up to $3,000 until age 65, after which an exemption of $10,000 applies.
See: https://militarybenefits.info/states-that-do-dont-tax-military-retirement-pay/#ixzz5KmP3NLpq

 

Veggies, exercise and sex

Yes, exercise is the catalyst. That’s what makes everything happen: your digestion, your elimination, your sex life, your skin, hair, everything about you depends on circulation. And how do you increase circulation? Exercise –Jack Lalanne  (http://www.brainyquote.com)

All the world’s most difficult problems are often generated and also might be solved,  through sex, exercise, and eating well.

Yes, Sex.  There are many facets to this subject, but as far as health is concerned I am focusing on how this is part of a healthy lifestyle.  Many issues in monogamous relationships can be relieved through a healthy sex life.  Often, one, the other, or both partner(s), because of an emotional or physical-origin imbalance (a triggering behavioral response or physical limitation) can hinder healthy sexual life.  Our physical and mental health directly contributes to having satisfying relationships.   Contributing directly to a healthy life, is what we consume and the exercise we get.

“All work and no play makes Jack a dull boy” – proverb, unk. origin

Of course,  many adults associate exercise with childhood or youth,  and delay or deny regular exercise.  Commuting early to work provides an excuse to not exercise.  The work schedule is another excuse not to regularly exercise (to relieve stress),  and the return home and additional commitments provide other excuses.  But those who do regularly exercise whether aerobics, weight-training and cardio-enhancing workouts see the doctor less for cardiovascular disease, joint ailments, and pain -medications than others.   Exercise helps keep circulation and all our bodily systems operating efficiently.

Personally, a recent education in the value of eating vegetables that provide healthy fiber, proper nutrients, as well as other food, and a radical shift in the amount of water I consume daily has made positive changes.   The difference between eating the processed, preserved, microwave-ready and overly-sweetened food,  and the natural, organic, non-preserved foods – with daily water intake, is visibly remarkable.   Appearance, energy-level, attitude and a healthy sex -life makes “Jack” NOT a dull boy.

Jack Lalanne lived healthily 97 years.  He once was celebrated at age 54 for besting 21-year old Arnold Schwarzenegger in a fitness challenge

Self-made

Do you think “outside the box”?  In other words, when you were a child were you chided for coloring outside the lines in a coloring book or for using “wrong” color crayons for subjects?  Did you ask a lot of questions? Were you someone who could ace your tests in school but were bored with rules, homework, and projects that “wasted” your time?   At work, do you get easily frustrated with the forms, chain of approvals, and eventual denial of your ideas for improving productivity?

Why is it that some of the best marketers and entrepreneurs came from humble beginnings, school dropouts and the like?  Perhaps these individuals are an anomaly.  Scholarly articles on the subject of entrepreneurship indicate that past success, “coloring outside the lines”, and stellar educational credentials predispose a person to be a successful entrepreneur,  it is not necessarily required to make a successful venture.    Some of the people I  am familiar with personally have built businesses though focused effort and personal ambition.  Yet many of today’s workers never achieve a level of comfort that is not mortgaged (homes,  cars, recreational vehicles).  We all become chained to our standard of living because of company health plans, steady paycheck and known, if not satisfying expectations.   Whatever happened to the people who threw everything they owned into a covered wagon and headed West into the undeveloped land in the 1800s?

What happened to the “American Dream”?

As one of the last Baby Boomers,  I have spent more than forty years. half in the military and half in the private sector, employed by someone else’s vision.  A year before I turn sixty,  I am wondering whether playing by “rules”, following the “Baby Boomer” model of (1) get a good education, (2a) join the military,  (2b) get a good job ,  and (3) through hard work and long working hours/effort  buy into the “American Dream”.  Is getting married, raising kids to have the same dreams, sending them to college; and retiring comfortably at some age around sixty or sixty-five still possible?  Somehow in the  past forty years, everything got more expensive,  taxes, fees,  and legal restrictions got ever-more difficult to compensate in order to obtain that retirement.  And so, for many, a second-income became necessary just to stay “even”.

Entrepreneurs are self-made

Amazon founder Jeff Bezos was not born into wealth.  He was the son of a teenage mom, and adopted by his mother’s second husband (who had arrived from Cuba a few years earlier knowing only a few words in English).  He held a variety of jobs growing up.  Brilliant and obsessed to make a better life, he was a garage-inventor.  Perhaps the early struggles in his family, helped him focus on academic achievement, which in turn lead him to Princeton. When he decided later to follow his passion, it was then he founded what would become Amazon.   And we know how successful Amazon has become.

Richard Branson, son of an attorney in England, has childhood dyslexia.  He dropped out of school and at sixteen founded a music magazine.  The billionaire founder of the Virgin group began with money from that venture to found a music studio.   Steve Jobs, co-founder of Apple Corp, was a brilliant college dropout who created the company in his parent’s garage.  While Mark Zuckerberg attended Harvard after very impressive scholastic achievement, he certainly built Facebook from a combination of intellect and ambition.  Logan Green and John Zimmer , former college students, created the ride-sharing service from improvements they learned from a service Zimmer built to help college students get around via Craigslist and Facebook linking.

At the end of the Nineteenth Century,  my maternal great-great-uncle, Philip Ward, an impoverished immigrant from Belfast (then Ulster) Ireland, established a mail-order business ( Bullock and Ward), in Chicago and the Mid-West, a rival to Sears, Roebuck and J.C. Penneys.  It did well until the beginning of the First World War.   Other maternal Irish family forebears had built businesses in the linen trade and chocolates (confections) in Ireland that prospered up until the Second World War.   My paternal ancestors came to New York from Poland and became tradesmen and entrepreneurs, engineers and shopkeepers.

Members of my family and extended family have been motivated by necessity  as well as intellect to have successful careers.   A Registered Nurse and single mother who went to school, worked, and raised her children, excelling at each to create a balanced life.  Mothers who achieved position and higher income with the largest corporations to support their families.  Entrepreneurs and marketing trainers who helped a national network improve their businesses.   And  some have followed a path a little more  “outside the lines” to create opportunity for themselves and for others through a nationally recognized  network marketing firm.

Find your why

What sort of vacation have you taken this year?   What trade-off have you made to have that new(er) car so you can get to work?    How often have you used that 5th wheel in your driveway since you signed the payment plan?    What size apartment have you been limited to because of income?  Are you working harder and longer to pay for the child-care for your kids?  Do you spend more time ill or seeing a specialist than enjoying mid-life?

For me,  I have driven eighty (80) miles or more every work-day for eleven years to my employer.    And that employer pays me enough now, to pay for my home – small that it is – and my new used car, but also means that my wife also has to work very long hours to  pay our bills and hope for retirement someday.    We do not have a pile of money.  And the years spent in search of “retirement” is perhaps the motive for wanting something better.

 Finding “time and money”

The old saying about being able to have time OR money, but not both has certainly had some application in the second decade of the Twenty-first Century.   But the additional reality is that your Government will take its cut of whatever you do extra.    However, the way to continue to earn is through residual income. That is income that continues  and increases beyond your own effort and time to earn it.

And with health problems for the last twenty years, a focus on healthy living and exercise – so I can afford to “retire” and ENJOY it – are reasons I chose to get involved with Beach Body.   I’ve seen what a niece has built through diligent effort -hard work- over eight years, in that she overcame health issues, and can work from home – a home her business afforded herself and her husband, while being mom to her two kids.  And she has been actively involved helping about 1600 people through her business build income and better lives in the process.

Like everything else in life,  the amount of effort put into an education, a career, a business venture, or a personal life is directly responsible for the achievement.   In the military, just about everyone who maintains an “average” performance can retire after twenty years with an average stipend. But additional effort and preparation can result in someone being selected as a Chief Petty Officer.  And of those,  even more effort, preparation, and focus, someone may retire as a Senior Chief ( or Master Chief).   With effort, and single-minded focus, someone may achieve an Amazon,  an Apple, a Facebook.  or a Beach Body enterprise.    Or even the 6 AM commute, ten-hour day, and 5 PM commute home.

Entrepreneurs.   Work Ethic plus an American ( or Latino, Canadian or British) Dream.

I have to go.  I need to go workout.

If you want to know more about an opportunity to get healthier, or help your child who loves the gym but is working double-shifts all the time,  check out  BeachBody

 

Thursday PT

  1. Start by making your bed, the Admiral advises.
  2. Personal hygiene
  3. Coffee.  Everything is better with coffee.
  4. Time for Physical Training!  PT (Weight training, cardio, core strengthening)
  5. Commence Holiday Routine.

Other than Monday,  I took the whole week off making up for the push we had at the end of the Quarter  last month.   Time to catch up on honey-dos, and sort through the stacks of stuff piled on my desk in recent weeks.   Probably have four books and two magazines that I want to read- mostly personal development topics that I need to read through.  Plus about a hundred blog posts to read and respond to.  Who has time to commute, slave away, and commute back – and have a life outside those parameters?  Thus, the needed Stay-cation.

I wanted to say thank you to my blogging community friends who have hit the “Like” on my accidental wisdom 500 times.   Ninety folks following have journeyed with me so far.

 likeable-blog-500-2x

Check out my page on Facebook, if you are interested in joining my health and fitness challenge for the summer.   Salty Dawg Fitness  Group page

E pleg nista

It is the Fourth of July, American Independence day;  it is the 242nd anniversary of a group of revolutionaries to pen a  “Dear George (King) letter”.  A random thought in a comment I made to my blogging buddy from across the Atlantic,  Little Fears, was all it took for this particular post to spring forth:

Funny that it all started over Tea, Taxes, and that royal thing… Now we have tea everywhere (though mostly ICED – which the UK knows nothing about;  in California specifically we pay the highest taxes (but don’t/won’t/can’t revolt); and if we aren’t swooning over British royals, we are treating celebrities as though they were royals!  

And I started thinking what it might be like in an alternate universe ,,,, which then lead to me thinking about an old, old episode of Star Trek ( the original 1968 version) when there was this episode,  The Omega Glory, about a distant inhabited planet that had a parallel history to the United States.  But war had destroyed everything but emnity between the Yangs and the Congs.

Of course, in the early decades of the Twenty-First Century, we all know that this is a very improbable scenario.  Even Neal Degrasse Tyson would be hard pressed to deduce the probability of an inhabited world somewhere in our galaxy having a parallel history to our Earth.

But imagine,   what if there had been no Revolution, no war over taxes and tea?    Something to ponder over coffee.

(Ed. note: had to make amends to die-hard Trekkies – I re-listened to the episode and it’s  e pleB nista  and Comms— but you get my drift)