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Im making up a budget to see what i can afford and just wanted a more accurate take home. I believe BAH is tax free but how much of my pay is taxxed my 2463 per month. Im from arkansas (resident) and omw to texas where i will register for residency. Hope you all can help.

2007-06-16 10:14:14 · 1 answers · asked by Anonymous in Business & Finance Taxes United States

Ill be married with 2 deductions.

2007-06-16 10:18:04 · update #1

1 answers

You're a college educated 2nd Lieutenant in the US military and your grammar and spelling are that horrible? What is this world coming to??

OK, take if from an old Top Kick here, LT. Your base pay is fully taxable. BAS (rations) & BAH (housing) are tax free.

If you are a resident of AR, AR will tax your pay until such time as you change your legal domicile. That can ONLY happen if you are stationed permanent party outside of your home state of AR. TDY or TAD assignments won't cut it. You can change your legal domicile by such actions as getting a TX driver's license, registering to vote in TX, etc. One warning, though. If you head back to AR at the end of your service obligation, expect AR to view your change of domicile as a tax dodge and possibly levy tax on all of the income you earned while "domiciled" in TX. CA and MA are infamous for that, I can't speak for AR but it is an option open to them.

You don't have 2 "deductions". Nobody does. Deductions are reductions to your gross income, such as itemized deductions, that reduce your taxable income.

Maybe you were refering to children? Or a wife and child? Neither of them are "deductions". You get "exemptions" for them when you file your tax return. Exemptions also reduce your taxable income (by $3,400 each for 2007) but are not the same thing as deductions.

If you want to see what your takehome pay might be, go here for some handy estimators: http://www.paycheckcity.com Only enter your base pay (plus any pro-pay or other taxable pays) and run the numbers. Then add back your BAS and BAH to see what your actual payckeck will be.

But whatever you do, PLEASE take a course in writing! If you turn in a report using the grammar and spelling you used in your question your career will be effectively over before it begins.

2007-06-16 11:29:23 · answer #1 · answered by Bostonian In MO 7 · 0 0

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