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)

Concert apart

The dictionary defines concert, so the director said Saturday night, as “a musical performance given in public, typically by several performers or of several separate compositions. (2) agreement, accordance, or harmony.” It was an opportunity to enjoy an evening with a thousand fans of symphony music. From the audience standing and singing the Star Spangled Banner to a medley of famous themes like the Sound of Music, the night and the performance were wonderful. And the point in the concert where the conductor asked military veterans to stand and be honored was wonderful.

The night was planned several weeks ago for our friends and us, to have dinner and enjoy the season-opening concert, San Diego Symphony at Bayside – on the waterfront downtown next to the Convention Center. The evening featured famous American composers and included masterful choral singing. Yet the night was unnecessarily in competition with a harbor cruise “party boat” going back and forth in the harbor all evening. While the symphony conductor was the picture of grace and civility, the operator, just offshore of our venue, was deliberately negligent, blaring the distracting beat, “ba-dum, ba-dum, ba-dum” over and over, and over again. The conductor made light of it, and yet many of my fellow veterans in the audience (from 20 to 80 years in age) were visibly ready to form a boarding party.

It was a great metaphor for the “endangered species” of civility – particularly in America in 2018. On the way home by trolley, a young person zigged and zagged to step in front of us “old people” ( I spent 4 seconds before inserting my card in the ticket-dispensing machine) to try to get her trolley ticket first (until I harrumphed and she demurred). On social media, a person makes a comment both insulting the fans and actually containing some painful truth, of a particular topic (politics), and gets his (insert characteristic here) questioned. But the comment was deliberately meant to provoke anger.

frowny_face

I regularly encounter both Prius and BMW drivers who act as though they are the most important dignitaries on the road -tailgating, careening across lanes – to get two car lengths ahead – in rush hour. When I hold a door open as a courtesy for females (as I do for males) even among my workmates, there is a occasionally a woman under thirty who seems irritated that I did so. But age is not a predictor of civility. I see men my age with yard signs or bumper stickers that declare other human beings idiots, criminals or ignorant. It is common now for people to pick “sides”. There is no tolerance for differing opinion. And there is no standard where dialogue has to be reasoned, calm, and well-supported by easily (verified (and unbiased) observers.

How do we revert to civility norms?

I think that this decline in civility has both been inflamed by social media as well as our education system. For fifty years we have groomed people to believe they have the right to say what they want without consequences. A Utopian desire for harmonious acceptance, order, and a pain-free existence for everyone everywhere is not through government control.  Either some are forced (Constitutional guarantees are repressed by power-brokers; disagreement is labelled “hate speech”) or are bribed (“living wage” increases worker support, recipients of “public assistance” are encouraged to remain on the “dole”) to be obedient, and the result is a lack of civility toward those who have different views.

One christian’s viewpoint

Most among the secular world see the faulty application of Christian theology by many as evidence of a faulty theology rather than faulty human beings.  Any government that promotes officially-sanctioned multiple languages, cultural norms, legal precepts, and political ideologies, is not elevating civility among dis-unified people but instead further isolating individuals and groups into opposing factions. History is full of these lessons. “Balkanization” is a term where multiple ethnic, religious, linguistic, and religious fracturing is present. The first World War all the way through the “ethnic cleansing” in the former Yugoslav (Balkan) states in the 1990s were due to this fracturing. Fear and paranoia of people who will not assimilate is thousands of years old.  But governments that accommodate the noisy separatists and neglect the “deplorables”, risk permanent balkanization.  It has been the national identity, as “Americans” regardless of all the other factors, that has maintained unity in the United States since the Nineteenth Century.  The resurgence of socialism in American culture, in the absence of a truly spiritual understanding of brotherhood, respect, looking after the ill and the truly desperate, leading a peaceful existence and having a strong work ethic, is not going to achieve a concert in America or elsewhere.

Secular proposals to restore civility in America

Americans can try to restore a civil culture through man-made effort.   But how do people restore civility?

  1. Restore ONE NATION: Celebrate our diversity in ethnic heritage but unify everyone who comes here – through the established immigration policies – to become AMERICAN. Stop using hyphen american in all our identifiers.
    1. Establish ONE language.  All business, education, judicial dealings, social interaction should be performed in English.  Teach different idioms and language, but everyone who wants to be a resident must read, write and speak English in everyday situations.  Make it mandatory to pass an oral and written exam within 24 months of arrival – with intent to remain – to reside in the United States, and become a citizen.  Make the language a requirement to obtain any public assistance.
    2. Restore the ONE culture. Quit the divisiveness of public – and public-funded institutions promoting ethnic separatism.  Whatever color, race, creed, or political leanings,  celebrate differences in the context of making the “melting pot” better.
    3. Prohibit any public official or lobbying group on behalf of any non-citizens, extra-national allegiances, from campaigning to support non-citizens, foreign governments, or business interests seeking to change immigration policies without a national vote.
  2. Restore GOD and belief in a Creator as acceptable teaching. Permit use of public property for the exercise of religion as with any other use.  Get government out of the Belief business.
    1. Spiritual beliefs that do not contradict the good order an unity of a nation, are not legally barred.
    2. Atheism does not trump the rights of others to practice their spiritual beliefs in private or in public spaces.
    3. Non-government employers and places of employment that express particular religious beliefs cannot be forced through legal redress to change policies (adding “abortion coverage” to a health plan for an employer that publicly “pro-life”).  Employment conditions are still voluntarily accepted by both parties – employer and employee.
    4. Public (government) employees are barred from expressing support for, or opposition to, insulting, belittling, or deriding a particular religious belief.
    5. The judicial branch of government only decides whether an action violates the law, not whether it is moral, ethical, proper, or the “intent” of the law-makers
  3. No elected official can refuse to enact voter-approved legislation that does NOT
    1. cause physical harm to individuals or groups
    2. bar individuals or groups from activities that do not seek to cause harm (violence, rebellion) or deny others their human rights
  4. No institution of government can be used to manipulate public information, sentiment, or coerce support for a particular national political entity in power. This also means no institution of government can be manipulated to deny another political entity the fair and equal opportunity in elections.
  5. No entity or institution serving the national interest – media service, local, state or national educational institution (public or privately-funded) can bar exercise of the Constitutional “freedom of speech”.
    1. Civility is a voluntary ideal but some focused practices could improve civility:
      1. Practice, starting in the home, schools, and social organizations  that disagreement with the policies of a government official does not condone any action, outburst, or display abusing that office.
      2. Accept the outcome of elections.  Bring change through the ballot box.
      3. Public figures or celebrities should not incite street protests and violence against law enforcement and other public safety officers.
      4. Leaders of religious orders should promote peaceful doctrines, respect for authority, and practices among their adherents.
      5. Engaging in personal attacks on or inciting abuse of the family members of a government official should be restrained by peers and not promoted as entertainment by media business, celebrities, and public officials.