Today I love the IRS

[BuckNaked]

I understand, really - BUT - so what do you think of dorms/houses? Should all airman have equal access to the housing instead of the dorms? What about the fact that "dependent" BAH covers spouse AND any number of kids, but in many base houses, you can only get a certain house based on the number/gender/age of kids?

I don't even know why I'm arguing military regulations - I'm sure we both agree most are pretty, ah... (And I'm just bitter that we can't get a three bedroom even though there's tons of them empty on base.)

Oh yeah, I've always been happy with our military benefits!!! Military members have it much better than many people (including some military members and spouses) either know or care to admit.

As for the dorms v. houses, I totally see what you're saying. I guess it would be that you can't have a family living in the dorms, so they have to have houses or apartments on base instead. But when it comes to paying out BAH, I just don't think that the pay differential is really fair. Maybe the answer would be to just do away with family housing, and pay anyone that lives off-base the same BAH rate, regardless of whether they have dependents or not.

 

[Wonderlandmom]

What about soldiers in a combat zone? I admit, this is a perk I look forward to when DH is deployed.

It is actually only tax free in a combat zone up to a certain amount. They took it out of DH's pay, then gave "most" of it back. They did keep some. (DH is an 0-5)

Yes, military perks are underrated. I don't think many civilians are aware of them all.

What I don't understand is how can someone who was not paying any taxes in a combat zone for an entire year get anything back? Maybe I misunderstood. ??

 

[Longsx3]

Oh yeah, I've always been happy with our military benefits!!! Military members have it much better than many people (including some military members and spouses) either know or care to admit.

I totally agree with this statement! Does DH make as much as he would in the Civillan sector...certainly not, but we have no worrys of layoffs and after 20yrs we will have a pretty decent retirement check.

Sure DH's job has differenet risks but we new that when he joined...the military has been good to us and frankly I could not imagine life any other way.

On the tax front our adjust taxable income was 1/3 of our total income this year...now mind you we live in Germany and recieve housing and COLA which are not taxable plus 3 months deployed.

 

[BuckNaked]

What I don't understand is how can someone who was not paying any taxes in a combat zone for an entire year get anything back? Maybe I misunderstood. ??

Military members serving in a combat zone have the choice of having their base pay made taxable if they want to. What that means is, if they aren't content with paying zero in income taxes, they can have the pay made taxable, thus qualifying some for the EITC refundable credits and getting back money that they never paid in.

 

[Wonderlandmom]

they can have the pay made taxable, thus qualifying some for the EITC refundable credits and getting back money that they never paid in.

 

[jenks0718]

I hope your not serious, but anyway its examples like these why I say the EIC is a load of If you can afford a Passat, I can't and don't qualify for EIC, you don't need any EIC.

I dont agree with the EIC either. My friend works as a waitress and makes a TON in tips. She lives with her mom and dad and of course her ds 7. Because she doesnt claim her tips and only her hourly wage she gets a HUGE refund. DH and I get penalized for how much we make together and havent seen a refund in four years.

 

[Alice28]

What about soldiers in a combat zone? I admit, this is a perk I look forward to when DH is deployed.

This is how we got it this year, cause DH was in a combat zone....most other years we are paying are taxes like normal.

 

[Alice28]

It is actually only tax free in a combat zone up to a certain amount. They took it out of DH's pay, then gave "most" of it back. They did keep some. (DH is an 0-5)

Yes, military perks are underrated. I don't think many civilians are aware of them all.

What I don't understand is how can someone who was not paying any taxes in a combat zone for an entire year get anything back? Maybe I misunderstood. ??

Well, for us it's because we have 3 kids which equals the $3000 tax credit...I don't reallt get how it works, but that's how it's written & it hurts me to think of others on here thinking my family is being greedy or wrong or acting like welfare recipients.

 

[BuckNaked]

Well, for us it's because we have 3 kids which equals the $3000 tax credit...I don't reallt get how it works, but that's how it's written & it hurts me to think of others on here thinking my family is being greedy or wrong or acting like welfare recipients.

The regular child tax credit is not refundable, meaning you can't take the whole thing if it means you will get money back if you have zero tax liability. I think that there is a refundable child credit, and that along with EITC is how people that pay zero in income taxes get a refund.

Yes, it's legal, but I would love to see such refundable credits eliminated.

 

[poohandwendy]

I don't blame anyone here for the way the laws are written, I just do not agree with them and I do not agree with the 'I worked hard and I deserve it" mentality.

 

[Alicnwondrln]

I dont agree with the EIC either. My friend works as a waitress and makes a TON in tips. She lives with her mom and dad and of course her ds 7. Because she doesnt claim her tips and only her hourly wage she gets a HUGE refund. DH and I get penalized for how much we make together and havent seen a refund in four years.

this was us up until last year
i was working full time as a retail manager and every year we paid
last year i started staying home with the boys so we still paid for daycare up until july so we shall i know we dont get EIC so..but i am hoping to not pay

 

[DawnCt1]

Oh yeah, I've always been happy with our military benefits!!! Military members have it much better than many people (including some military members and spouses) either know or care to admit.

.

I agree and frankly, because we pay the "alternative minimum tax", I am looking forward to the tax exempt status DH will have when he is deployed to Iraq next month. (Ya gotta look for the silver lining... ) I was also pleased with TriCare (again) when I picked up our usual perscriptions and had an $18 copay instead of the usual, $$$$ amount. We bypassed having a medical savings account this year because it would have been difficult to leave some for the government in the likelihood that we wouldn't have spent it. I will get our mortgage rate reduced and any other outstanding loans, and that's a nice perk.

 

[N.Bailey]

As I've said earlier, I will never fault anyone for taking advantage of something that's there for the taking. IMO, not taking it would be foolish! I just personally agree with many that it shouldn't be there in the first place and I've held this opinion since first becoming aware of tax law. That would have been right after asking the question, "What the hell is FICA?" after receiving my 1st paycheck!

Having said that AGAIN, I don't think our government really does much about it because I really feel that giving these refunds helps the economy. There are many (I could name you 20 that I know personally) that just blow their refund. That's their business and I'm owed no explanation. Spending that money though does create jobs, or at minimal, keeps people working to supply the demand.

Just to break the numbers down a bit though, you could give every man, woman, and child alive in the US today a $600 yearly refund to equal the type of money this costs the government.

 

[janette]

I dont agree with the EIC either. My friend works as a waitress and makes a TON in tips. She lives with her mom and dad and of course her ds 7. Because she doesnt claim her tips and only her hourly wage she gets a HUGE refund. DH and I get penalized for how much we make together and havent seen a refund in four years.

If she's not claiming any tips her chances of getting audited are very good, The IRS can audit everyone that works in a restaurant and send them a bill for taxes owed based on their sales. With the IRS they assume they are right unless you can prove them wrong and without very good records they will collect on their calculations not yours. I'd agree that many in the food service industry may not claim all they make but not claiming any would be a red flag to the IRS.

 

[Alice28]

I do not think anyone should be exempt from federal taxation, period. I think soldiers should be paid more, I think the benefits should be better. I think we all should be responsible for funding the govt, via taxes. No doubt. This is why I get pissed when I hear people talk about how they 'work hard' and deserve the EIC...when I do my taxes and we not only contributed 12k and we find that we 'qualify' (what a lovely way to put it) for the alternative minimum tax and still OWE another 1500 dollars...while there are people who are not paying anything and getting money handed to them in addition? We bust our butts too, ya know? We are not rich, my DH is an electrician and I am a manicurist....

Enjoy that tax ''refund'' (is it really a refund if you are getting back more than you paid?) and we will just hand over 13,500 to the federal govt. Yeah, that is fair.

Love your tag- I'm totally feeling the support you give to the Armed Forces right now.

The ONLY reason we are getting the money this year is because DH did his job of adhering to the call of the Army. Did his 17.5 months as an Oregon National Guard soldier, 12 of which in a combat zone. Tax laws says because he was in a combat zone, he doesn't have to pay full federal income tax. Federal law says because we have 3 dependent children we can claim them a as a credit. We have an EIC this year ONLY because of the whole combat zone deal. Tax laws say we can get it.

Did DH do his job this year? Yes.
Did we follow the laws when filing our taxes this year? Yes.
Did we lie, cheat, abuse the system in any way? No.
So therefore, do we "deserve" the money we are getting back in our taxes this year? Yes, I think we do.

I'm done with this thread now.

 

[BuckNaked]

Love your tag- I'm totally feeling the support you give to the Armed Forces right now.

So anyone that doesn't agree that military members should be getting a handout isn't supporting the armed forces? Got it, good to know.

The ONLY reason we are getting the money this year is because DH did his job of adhering to the call of the Army. Did his 17.5 months as an Oregon National Guard soldier, 12 of which in a combat zone. Tax laws says because he was in a combat zone, he doesn't have to pay full federal income tax. Federal law says because we have 3 dependent children we can claim them a as a credit. We have an EIC this year ONLY because of the whole combat zone deal. Tax laws say we can get it.

So therefore, do we "deserve" the money we are getting back in our taxes this year? Yes, I think we do.

Of course you think you do - how else could you justify getting back more than you paid in? He deserves a handout for doing his job? I thought that's what pay was for.

 

[katerkat]

Maybe the answer would be to just do away with family housing, and pay anyone that lives off-base the same BAH rate, regardless of whether they have dependents or not.

Do away with base housing? But where would the bees, spiders and gophers live??

It is actually only tax free in a combat zone up to a certain amount. They took it out of DH's pay, then gave "most" of it back. They did keep some. (DH is an 0-5)

Ah, I'll just have them stop deploying DH after it's not tax-free. That'll work, right?

 

[Wonderlandmom]

DH did not know at what point his income was taxed while deployed so I looked it up.

For 2003, the monthly combat pay exclusion for officers totals $5,957.70. For 2004, it totals $6,315.90. Amounts excluded from gross income are not subject to federal income tax.
http://www.irs.gov/newsroom/article/0,,id=101262,00.html

Not sure what it was for 2005. But I imagine monthly income more than $6,300 or so is taxed. Of course there was BAH plus all the other combat pays and that was not taxed either.

Ah, I'll just have them stop deploying DH after it's not tax-free. That'll work, right?

I wish that worked! Let me know if you figure out how to stop them!

 

[BuckNaked]

Do away with base housing? But where would the bees, spiders and gophers live??

OMG, I know!!!

We have terrible spiders here, and when I was TDY to McGuire AFB in NJ, there were gophers (BIG gophers!!) all over the place. It was like Animal Kingdom at that place.

 

[Linnie The Pooh]

I agree and frankly, because we pay the "alternative minimum tax",QUOTE]

We pay this ridiculous tax too and it fries my behind every year. My cousin who was in prison the majority of the year (a few years ago) and the few months he was out, he didn't work got $500 back. Meanwhile we paid the AMT-we might as well just have given him our money. You should NOT get back more than you paid in.

My ex SIL spent her EIC on a **** job. Yes, a **** job. Oh it's served her well-she shows everyone her rack every chance she gets.

EIC needs to either be done away with or the money should go into an account for the recipients' childrens' college fund. EIC should NOT go towards someone's **** job.