Dependant? Question about BAH and stuff

[navywings22]

First off, I am getting my commission in May. I have been selected for 1390 but have not gotten orders yet. My question pertains to what it will be like when I move to Pcola soon.

I have read a lot of gouge on what to expect and searched these pages pretty good but I figured I would ask my specific question and see if any of you gentlemen or ladies would know the answer.

I am engaged right now but we have not set a date to be married. My fiancée is in school right now and will be moving to Pcola with me. She will be living with me and going to school at UWF. She will be 20 years old when we move down there. Her parents are not in the picture... That is a whole story that is not necessary to divulge here. Her permanent address has been my parents' home for 2.5 years now. My parents claim her as a Dependant but could stop claiming her if it would be necessary for my plans to work out.

Since she will be living with me and I will be completely supporting her financially will I be able to claim her as a Dependant even though we will not be married yet? Is there a benefit to doing this other than the extra BAH money?

Our only other worry has less to do with the Navy. I am worried that if I claim her as a Dependant that she will then have to include my financial information when applying for federal aid for school. With putting only her parents' information down she will receive ALL of the federal aid she can and could possibly get school paid for.

I absolutely hate that we have to base our marriage date on what would be most "cost-effective" for us during this time period but we can not get around the fact of it. As you know I will be making enough money to support the two of us and help pay for her school but the kicker is that I wasn't on scholarship until 2 years in and I currently have a LOT of money in student loans to pay off as well. So money will be tighter than your average newly barred Ensign.

I know this is a very specific and in depth question but I figured maybe I could get some good advice from you guys on which route to take.

Also, would this situation constitute my being able to have priority to stay in the Pensacola area as long as possible through flight school? That would be nice seeing as I will have to leave her behind to continue school at UWF if I am sent to Corpus or anywhere else.

Thanks in advance guys.

David

 

[navywings22]

Oh, and sorry if this is in the wrong forum section. I didn't really know where it would go...

 

[MasterBates]

If you are not married, she is not a dependent. Period.

 

[navywings22]

That's what I figured... Thanks.

Does that count out priority of staying in Pcola?
I'm guessing it does

 

[loadtoad]

To tag onto his question I was curious about something. How much more BAH do you get with a Spouse as your dependent. I think I heard its about $200-$300. Is that about ballpark figure?

 

[Rubiks06]

You can look that up online just google military pay calculator. It used to be a lot more. They just changed it last year and now single BAH is a lot closer to W/Dep.

 

[loadtoad]

gotcha thanks

 

[milky-f18]

You are talking about two different definitions of 'dependent.'

Firstly, the Navy definition is the answer you have received here. It is true that if you are not married, it will take a ton of extra paperwork and legal work to get her declared a Navy as far as the Navy is concerned. So, for all intents and purposes, until you get married.

Secondly, the IRS/tax definition of dependent is very different. That's the one that your parents have been doing with having her (and you) living at home. To have a dependent that way has something to do with the percentage of support you give for what portion of the year she lives with you. I don't know the exact definition, but it wouldn't be hard to find. So, when it comes to financial aid which is based off of taxes, that is the one that is going to be affected by who claims her on their taxes. If you find a way to claim her a dependent in that manner, it is true that your income would be included in figuring out financial aid in much the same way that your parents' income should be right now if they are claiming her as a dependent. Once you are married, she would not be a dependent as far as the IRS is concerned. Your income would then just be part of her household income which would then affect her financial aid in a similar manner.

So, in the end, you're probably not going to get any tax breaks for you or extra BAH unless you get married. Unless your parents drop her as a dependent and she takes up residency in FL, she is probably not going to affect her cost of going to school that much by moving down and being married or not married. UWF is pretty cheap for FL residents, so marrying you, declaring residency and paying the FL resident rate will get you BAH from the Navy and the in-state tuition at UWF. Together, those are probably your best options if you are looking at it strictly monetarily. It would be easy to do the math both ways and see how it comes out.

As an aside, from a moral standpoint, I don't think getting married or not getting married for financial reasons is really a good way to make decisions. I'm sure you already plan to get married, so that probably isn't an issue, but I just didn't want anybody to think that I would recommend people base their marriage decision off of a financial problem.

 

[yoquendo]

If you are prior enlisted then your orders should have TAD to pensacola with permanent following orders to Milton, regarless if you are married are not. But if you are not prior and not married then your orders will be to pensacola and primary can either be in corpus or milton. As far as you claiming your fiance as a dependent, you have to be legally married...no way around that.
As far as her financial aid for school goes, if she fills out her FAFSA for the 08-09 school year she can put her parents income and claim single even if you two get married this year. Once the next school year rolls around, 09-10, that is when she will have to put your income and that she is married.
Hope that helped

 

[villanelle]

Another thing to keep in mind is that she won't be able to get on base by herself or use any base facilities until you are married.

That's not a reason to rush it, of course, especailly since at leasst one of you is still very young, but I am pointing it out.

The difference in BAH is not that much so that shouldn't be too much of a factor either.

 

[MasterBates]

I reccomend against getting married IN flight school.

Before (well before) or after if you must. Trying to adjust to each other while going through flight school is stress you don't need.

 

[loadtoad]

I reccomend against getting married IN flight school.

Before (well before) or after if you must. Trying to adjust to each other while going through flight school is stress you don't need.

I am surprised you recommended that and not a prenup.

 

[navywings22]

I appreciate all your help guys. It has helped a lot.

As far as whether or not we plan to get married sooner or later:
We have been together for almost 5 years now. Most people frown at me, laugh, or just seem really confused about why I am engaged so young (21) but it doesn't bother me. I am very adaptable and I really don't let other people's opinions on that matter sway any of my decisions. I do love her and plan to marry her. That goes for however long we decide to wait.

The original plan was to wait until she graduates. That would be one semester after I get winged provided minimal wait times in between portions of flight school. And obviously provided I make it through to the end.

That plan may still be in effect. We just have to talk about it more. I am simply looking ahead and seeing if getting married sooner than later would harm her schooling in any way. I do not want to jump the gun without thinking through whether or not it would mess anything up for her. As far as the money goes, I would pay it all to be with her.

I know that sounds a little too naive coming from a young one like me but that is how I feel. We have lived together for close to 3 years now so I don't have much to get used to. It will be different if we are apart actually.

She is fully supportive and so am I so I have no doubt that it will work out during school.

 

[milky-f18]

...My parents claim her as a Dependant ...

...I am worried that if I claim her as a Dependant that she will then have to include my financial information when applying for federal aid for school. With putting only her parents' information down she will receive ALL of the federal aid she can and could possibly get school paid for...

Not to be a tax nerd here, but if your parents are claiming her as a dependent, then her parents should not be claiming her. Thus, when she fills out her FAFSA, she should be using your parents' AGI, not _her_ parents' AGI. If your parents make a lot more money than her parents, you are technically lying to the government when it comes to the family contribution portion of her Federal financial aid.

I don't think anybody at the IRS or anywhere would ever probably put the pieces of all of that together and track her down, but if you are trying to do it the right way, that would be the case... Unless your parents don't actually have the legal right to claim her as a dependent, then the FAFSA would be correct, and your parents' 1040 would be incorrect.

Sorry to geek out with tax stuff

***The preceding should not be construed as legal or tax advice since the poster is not a certified attorney or financial counselor***

 

[magnetfreezer]

Not to be a tax nerd here, but if your parents are claiming her as a dependent, then her parents should not be claiming her. Thus, when she fills out her FAFSA, she should be using your parents' AGI, not _her_ parents' AGI. If your parents make a lot more money than her parents, you are technically lying to the government when it comes to the family contribution portion of her Federal financial aid.

I don't think anybody at the IRS or anywhere would ever probably put the pieces of all of that together and track her down, but if you are trying to do it the right way, that would be the case... Unless your parents don't actually have the legal right to claim her as a dependent, then the FAFSA would be correct, and your parents' 1040 would be incorrect.

Sorry to geek out with tax stuff

***The preceding should not be construed as legal or tax advice since the poster is not a certified attorney or financial counselor***

Isn't the FAFSA definition of dependent different from the IRS one? I knew a dude in college whose parents refused to support him for various reasons and could not claim him as a dependent on their tax return since they did not provide >50% of his support. He got screwed on financial aid, however, since he had to include his parents assets/income because he was under 24, not a veteran, etc. For tax purposes, to claim someone as a dependent you have to put down the SSN and I believe the IRS cross matches to prevent more than one person from claiming the same dependent.

**not a lawyer or CPA either**