Overseas taxes question?

Question

My husband is in Iraq, he is getting the 3 extra pays, but today when I was looking at his LES, I wondered why he is still paying all 3 taxes, I dont remember which ones he was and which he was not supposed to be paying, can you tell me which ones please.... and if he has been paying them does he get the money back when it is brought to there attention

He left October 19th

Answer 1

Soldiers in combat zones are exempt from Federal income tax. They are not exempt from FICA, i.e. Social Security and Medicare taxes, though some pay categories such as per diem are exempt from it. (State income taxes vary by states. I like those states that don't have 'em at all but some like MI exempt all service members not stationed in MI.)

The two ways to get the FedWH returned are to alert finance to their error or to file it at the end of the year on your 1040. Either way, it will be returned. I recommend talking to Finance because I don't like giving Uncle Sam an interest free loan.

Since October!? I'd certainly talk to Finance. That's gonna be a nice refund. October - December will have to be done on the 1040 but January - July can be done through finance.

Answer 2

He should be paying Social Security and disability taxes (and of course SGLI which isn't a tax). Normally they credit this back once a month. Make sure one LES during the month isn't showing "other credits" that should be at least a couple hundred dollars (depending on your husband's taxes paid). If you don't see something like that, AND IF YOU HAVE POWER OF ATTORNEY, you can contact his finance office and try to get it straightened out. You don't want to wait until the end of the tax year because that jacks a lot of troops up. Depending on the office and ability of the personnel in that office you should be able to have it credited back. I don't know what branch your husband is in, but in the AF they put in what's called an A90 transaction (different branches call it different things). In any event, so you don't have to spend a fortune on accountants at the end of the year, you really want this done monthly (it is nomrally done at the beginning or end of each month).

Double check the LES's, and if you don't have POA see if your husband can get you one from where he's stationed in Iraq. The finance office may have had him slip thru the cracks accidentally so check all of the LES's since you might see one large credit on there somewhere. If not, get the POA and go straight to the finance office. If he's Army they'll probably give you a hard time or say they don't do it until the end of the tour. This is bull and go over their heads.

Answer 3

that depends on WHEN he left. like everything in the military...it takes TIME to get all the pays correct.

so if this was his first LES statement you've looked at after he left..don't count on it being tax free yet. it will more than likely be his 2nd or 3rd pay cycle before they get all that stuff squared away.
and i believe that they would most likely pay back those taxes on the 3rd or 4th pay cycle. you can call his on base supervisor for info about it, if you can't get an email to your hubby right now. but it DOES need to be brought to someones attention in Finance if it's not reimbursed by the 4th pay cycle since he's been gone.

Answer 4

The only thing you dont pay is federal tax and state tax. But if they did take it out, you will just get money back in the return, they wont give it back any sooner, but to stop them from taking anymore talk to finance.

Answer 5

the only taxes that get reimbursed are Federal. you still pay FICA and State.

now, some commands are reimbursing it right away, like within 2 weeks of the pay, others are doing it at the end.