Per diem tax question

[KBayDog]

(This sounds like time for another shameless plug: www.fairtax.org )

Proceed with the chlorophyll...

 

[Fly Navy]

(This sounds like time for another shameless plug: www.fairtax.org )

Proceed with the chlorophyll...

It's a good idea, like Flat Tax... but unless you can convert all the Democrats and educate the country on how taxes really work (most people think the poor pay the most taxes, at least those that I tend to run into think that), it will never, repeat, never happen. I'm with you though.

 

[HH-60H]

Nope, federal taxes are not withheld, and the money does not show up in Block 1 of your W-2. You do pay FICA/Medicare etc. on it though.

Prior to going into the combat zone (particularly on deployment) can't you elect to have fed taxes withheld (and then get them back at tax time) or not? I seem to recall filling out some forms that dealt with that.

 

[Brett327]

Prior to going into the combat zone (particularly on deployment) can't you elect to have fed taxes withheld (and then get them back at tax time) or not? I seem to recall filling out some forms that dealt with that.

Why on Earth would you do that?

Brett

 

[Fly Navy]

Why on Earth would you do that?

Brett

I was thinking the same thing. I never understood why people invest in the 0% Uncle Sam Fund.

 

[HH-60H]

Why on Earth would you do that?

Brett

Oh, I didn't, I just remember signing some form, which gave me the option either way.

 

[NavyWife2001]

It is ridiculous that you have to claim your move money for income! That is just too crazy. I don't ever remember having a W-2 for any move last year, but I think that this is what this one we got the other day is.
Does that make sense???

 

[A6-EA6]

It is ridiculous that you have to claim your move money for income! That is just too crazy. I don't ever remember having a W-2 for any move last year, but I think that this is what this one we got the other day is.
Does that make sense???

I think the way the financing goes, you're being "paid" for the DITY move and so you need to be taxed on that income by Uncle Sam. (assuming this was for DITY move)

 

[NavyWife2001]

Yeah a partial....which is why I laughed when I opened the W-2 because it is such a tiny amount. LOL!

 

[bennett4362]

but why wouldn't a dity (or partial) fall under the same scope as per diem, since aren't you technically getting reimbursed for expenses out of your pocket associated with the move?

 

[NavyWife2001]

It doesn't make sense does it? You don't have to consider DLA as income either. No clue, but I am sure that it falls under some category somewhere!

 

[Brett327]

but why wouldn't a dity (or partial) fall under the same scope as per diem, since aren't you technically getting reimbursed for expenses out of your pocket associated with the move?

I concur. I've done partial DITYs and never received additional W-2s. That is not considered pay and you should check w/ PSD as to what that is all about.

Brett

 

[NavyWife2001]

Well crud! I guess I will be ripping open the packet to get that one out! It is hard to get in touch with any one that knows what is going on anyway. I tried calling today and of course the person wasn't there. If I find out what it is, I will let ya'll know in case someone else is dealing with the same thing!

 

[zippy]

i got specific W-2s for DITYs this year... one was a full and the other a partial. Personal Property handles the dity stuff- the tax people on base might know.

 

[ChunksJR]

PP and PSD...2 of the most inefficient/horrible places known to civilization.
[/threadjack]

Did you get an advance on the PDITY? That could also be it.

~D