There’s a rumor floating around that somehow your taxes are going to zoom up after you retire from the military. As with many rumors, there is a bit of truth in it, but there’s also just a lot of confusion. It is true that some military families end up with large tax bills in their… | Read More…
Understanding The Military Spouses Residency Relief Act and How It Applies To State Taxes
I am republishing this article to be more clear about the 2018 updates. The Military Spouses Residency Relief Act (MSRRA) is important law, but it is very misunderstood. Passed in 2009, it is actually an amendment to the Servicemember’s Civil Relief Act (SCRA) to provide certain specific protections to some military spouses. It was… | Read More…
Favorable Tax Rules for Military When Excluding Capital Gain from Sale of Principal Residence
I asked my smart friend Paul Allen if he could possibly explain the capital gains exclusion in another way, especially the part about partial exclusions. I’ve always been confused by them. Even though I’ve written about this here, I was still baffled about that part. And Paul came back in a big way. I am… | Read More…
How Income Taxes Work – Even If You’re Not A Tax Person
Income taxes can be difficult. There are literally thousands of pages of laws, and hundreds of different forms that some people have to use to file their income tax return. However, the basic system isn’t really that complicated. The Budget Billing Analogy Before I explain the income tax system, let me explain something very similar:… | Read More…
10 Things To Know About Money and Deployment
When people talk about deployment, one thing that often comes up is money. How do taxes work? How much do people spend on deployment? What do you do about the bills? What’s the best way to save? The answers to these questions are different for everyone, and many of them depend on the specifics of… | Read More…
Home of Record and State of Legal Residence: Things You Need To Know
The military can be confusing, with all its special terms and acronyms. One of the terms most often mis-used is home of record. The term comes up in questions about taxes and driver’s licenses and final moves. On rare occasion, when talking about final moves, it’s being used properly. The other 99.9% of the time,… | Read More…
Understanding Depreciation Recapture Taxes on Rental Property
My friend Forrest has shared his article about depreciation recapture: What Military Landlords Should Know About Section 1250 Depreciation. Sometimes it’s helpful to hear things from two different voices 🙂 You’ve owned a rental property for a few years, and it’s worked out pretty well. You’ve made a little bit of money most years, and you’re… | Read More…
Deployment and Medical Expenses – Should You Bunch Your Medical Spending?
It’s December, and that means endless commercials reminding people to use their flexible spending account dollars before the end of the year. Â The Department of Defense, unfortunately, still hasn’t implemented the flexible spending account that they were directed to create in the 2010 Defense Authorization Bill. If we don’t have flexible spending accounts, why should… | Read More…