Tax Credits vs Benifits

SFC Private RallyPoint Member — Thu, 13 Nov 2014 18:09:55 -0500

For those of us that have made the Military a career, is it safe to say '...stop being ungrateful...' to those Soldiers that can't manage their money and complain that the Congress has eliminated Child Tax Credits and E.I.T.C. Tax Credits.

I think it's fair to say most of us career military pax only get taxed on like 65-70% of our net income, receive free (for now) healthcare, and fall somewhere between the 5% and -5% tax bracket after we file.

There's always two sides to the coin.

Learn to manage your finances gents!

Response by CW5 Private RallyPoint Member made Nov 13 at 2014 6:21 PM

CW5 Private RallyPoint Member — Thu, 13 Nov 2014 18:21:04 -0500

Amen to that, SFC Private RallyPoint Member. And I learned that 60-70% part the hard way the first year after I retired. I didn't take that into account when I planned for taxes that first post-active duty year, and I wound up owing the IRS over $8,000. Enjoy that tax free money (BHA, for example) while it's flowing.