Military Retirees?

[Frosty]

Ours never works out right... DH and I are both retired mil. We have to have everything set at zero dependents and get as much withheld as we can because any fed refund is offset by the fact that for some reason the state never takes enough. So by the time we pay what the state says we owe, we might have $40 left of the fed return if we are lucky.

I did some checking, I am actually getting $50 a month more than I was three years ago, guess I can be grateful for that...

 

[joletabey]

I am not military, but have lots of friends who are - it seems to me that everyone is in the same boat, and you DO need to figure ahead what tax bracket you are going to be in if you have multiple incomes in the household. By myself, I am poverty level, but with my husbands income added to it,we fall in the 25% bracket, so I have had to get way more taken out of my checks if we don't want to pay in at the end of the year. To the point where, honestly, I was wondering if it was worth working, and then decided to go get a third job so I can help get us out of debt faster so I CAN quit working.
Did that make sense?

 

[al6517]

No change in my Military retirement pay & Military disability pay this month, I also get 70% disability so that may factor in, I don't know. I sure hope they quit jacking around with our benifits, I do know my Tricare prime premiums will be going up because of Obama care.

AL

 

[Mac in Wisco]

Quote:
The new withholding tables go into effect in March for retirement pensions. You should be receiving a new retiree pay statement that shows the changes.

 

[Mac in Wisco]

Quote:
I wouldn't forgo earning a dollar just to keep from having to pay the government a quarter...

 

[dacjohns]

I get hit twice. Since I work for the federal government (USDA Forest Service) I don't get a cost of living raise for my "working" job. Go figure; gas is up with no sign of going down and food is up yet the cost of living hasn't gone up? I guess if I were an economist instead of a biologist I would understand.

 

[Mac in Wisco]

Quote:
For the average working stiff, it's not as complicated as you'd think, as with anything it just takes a little knowledge. I think math scares some people.

For a married couple, filing jointly, with no kids living on a $25,000 military pension:

$25,000 minus an $11,600 standard deduction and 2 x $3700 in personal exemptions =

$6000 in taxable income. For 2011 the first $17,000 of taxable income is taxed at 10%.

Your tax bill for the year will be $600 and withholding should average out to around $50 per month for the year.

If your withholding is too high and you pay in $1000 in withholding throughout the year, then you will be owed a tax refund of $400 and you have effectively given the government a $400 loan. If you have only paid in $200 in withholding, then you will owe them $400 on that tax bill at the end of the year...

That is the max that a married couple would owe for federal income tax on a $25,000 income. Obviously, if you have itemized deductions that exceed the standard deduction or qualify for any tax credits then you will owe even less.

 

[sfw2]

The thing that I love is that so many people think that military retirees are rolling in money, with free healthcare and all kinds of other free benefits. Guess my husband must be retired from a different military???

 

[dawg53]

Please.....dont get me started about free healthcare! I might blow a headgasket!!

 

[speckledhen]

Quote:
For the average working stiff, it's not as complicated as you'd think, as with anything it just takes a little knowledge. I think math scares some people.

For a married couple, filing jointly, with no kids living on a $25,000 military pension:

$25,000 minus an $11,600 standard deduction and 2 x $3700 in personal exemptions =

$6000 in taxable income. For 2011 the first $17,000 of taxable income is taxed at 10%.

Your tax bill for the year will be $600 and withholding should average out to around $50 per month for the year.

If your withholding is too high and you pay in $1000 in withholding throughout the year, then you will be owed a tax refund of $400 and you have effectively given the government a $400 loan. If you have only paid in $200 in withholding, then you will owe them $400 on that tax bill at the end of the year...

That is the max that a married couple would owe for federal income tax on a $25,000 income. Obviously, if you have itemized deductions that exceed the standard deduction or qualify for any tax credits then you will owe even less.

Mac, we make nowhere near that amount, not even close. I'd feel rich if we did. We only make about 60% of that amount you quoted and my DH has a disability rating from the military for his degenerative disc disease. I do not want folks to get the wrong idea about military pensions. They withheld only about $500 for federal, which is what we get back. The cost of insurance for both old vehicles for the year is just under $500.

Georgia withheld $300 and wanted $302, so I have to write a $2 check to the state for the dubious honor of living here.