Tag Archives: money

Military spouse education: the costs, the options, and whether it’s right for you

military spouse educationThe same story is told throughout military communities and within military support systems—military spouses are hard pressed to find employment. PCS moves are frequent and jobs come and go. Luckily there is a way to help combat the unemployment woes. Education.

Not only will a higher education increase the chances of employment for military spouses, it will contribute to your family’s financial well-being. A study from CollegeBoard.org reports, “the typical bachelor’s degree recipient can expect to earn about 66% more during a 40-year working life than the typical high school graduate earns over the same period. Higher earnings are one of the important outcomes of higher education. Average earnings for adults increase with years of education and particularly with degree completion.” Higher education degrees are now more accessible to military spouses thanks to distance learning programs.

The education community has shifted in favor of military spouses. Many private and public universities offer reputable degree programs online, an attractive option for mobile military spouses. Distance learning can also be more flexible when it comes to your military family calendar. Find additional information on pursuing a degree in higher education in our website section on spouse education.

One necessary price I know of that comes with education is the cost of tuition. To alleviate the inevitable costs of higher education, military spouses have options. Visit your installation’s Family Center, Education Center, and the financial aid office at the school you wish to attend for more information on financial assistance. Various military associations, including the National Military Family Association and some military spouse clubs, offer scholarships for military spouses. If eligible, you can use a portion of your service member’s GI Bill or apply for government funding through MyCAA.

The National Military Family Association is made up of many military spouses like me, so we know firsthand the importance of military spouse education and the difficulties that come with achieving higher education due to moves and expenses. If you’ve been following us on our website or social media, you know our Joanne Holbrook Patton Military Spouse Scholarships are awarded to spouses of all Uniformed Services members and applications are live online now. The application deadline is TOMORROW, January 31st – there is still time to apply here!

I truly believe an education outweighs the cost that comes with more schooling. As a military spouse, my education has broadened my career options and allowed me pursue opportunities that would not be available if I did not have a degree.

Are you starting or continuing your education? What challenges have you faced in doing so and what resources have worked for you?

alliePosted by Allie Jones, Military Spouse Scholarship Program Manager at the National Military Family Association

Tax filing tips for military families

Tax FormDoes anyone else feel the tax “season” is longer than a traditional holiday season? The commercials for tax prep start before the New Year’s Eve ball drops and continue through the Cadbury egg commercials. Then suddenly it’s April 15.

Try to avoid the last minute stress of filing your taxes by being prepared. It may be helpful to review information specific to military families and your tax situation. The IRS Tax Information for Members of the U.S. Armed Forces contains online videos and short articles which highlight military specific issues such as combat pay, filing deadline extensions for deployed service members, and tax laws that provide special benefits to service members.

Free tax filing services are available through Military OneSource. The program provides free access to a customized version of the basic H&R Block at Home® online tax filing product. This customized product allows for free federal filing and up to three state returns. Military OneSource also provides tax counselors via telephone at 1.800.342.9647. The counselors cannot prepare tax forms, but can help you make an informed decision about your tax situation.

TurboTax also recently released a Military Edition that, until February 14, is free for junior enlisted military personnel (ranks E1 to E5).

Military installations offer Volunteer Income Tax Assistance (VITA) consultants to assist with free tax advice, tax preparation, return filing, and much more. Locate the closest VITA site using the Armed Forces Legal Assistance Services Locator.

We’ll highlight additional tax-related resources in the upcoming weeks. What tax filing tips would you share with other military families?

katiePosted by Katie Savant, Government Relations Information Manager at the National Military Family Association

Losing sleep over your home loan?

Military families: losing sleep over your home loan?Over the past few months, my husband and I have been working with Housing Urban Development (HUD) housing counselors to modify our home loan and learn more about our mortgage options. It has been overwhelming to dig into the nitty-gritty details of the various government programs available to homeowners and to comprehend the fine print of our current mortgage.

Our situation is not unique and I know I’m not the only one losing sleep because of my home loan.

The National Military Family Association has heard from military homeowners across the Nation regarding their struggles with selling a home when they have orders to relocate. When PCS orders arrive, military families too often find their home is worth less than what they owe. In many cases, a LOT less.

While some families find renters, others struggle to maintain two house payments and make ends meets, or are forced to sell at a loss.

To help military families avoid foreclosure, the Treasury Department updated guidance to its Home Affordable Foreclosure Alternatives (HAFA) Program that may help in some circumstances. HAFA pays incentives for a short sale or a Deed-in-Lieu (DIL) of foreclosure used to avoid foreclosure when a borrower is financially unable to continue to pay their mortgage. Under the guidance, service members who cite a PCS order as the basis for their financial hardship when asking for help under HAFA will now be eligible even if their income has not decreased.

Our Association is continuing to work with policymakers to create better solutions for military homeowners. If you’re a homeowner losing sleep over your home loan, seek help (888-995-HOPE) and learn more about your options. Your sleepless nights might become a thing of the past.

What are your concerns as a military homeowner – could  the HAFA program help you?

hannahPosted by Hannah Pike, Communications Deputy Director at the National Military Family Association

One toe over the edge: the Fiscal Cliff and military families

One toe over the ledge: the Fiscal Cliff and military familiesSo we’ve managed not to topple over the cliff, but it looks like we’ll be hanging on the ledge of uncertainty for a few more months. In the wee hours of the New Year, Congress passed a compromise bill to keep the country from heading over the edge. Like any compromise, the bill didn’t please everyone, but it did fix several issues important to military families, including a one-year extension of the Medicare/TRICARE doc fix, which will help protect families’ access to health care. The compromise legislation did not include an increase to the debt ceiling and the Treasury Department estimates it will run out of ways to stay within the current ceiling by late February or early March, right about the time sequestration is now set to start.

And what of those automatic cuts to federal spending, known as sequestration? The best the Congressional leaders and the President could do was to postpone it for two months. That might sound like a good thing, but this delay also means uncertainty about what will or could be cut for military installations, schools that educate military kids, defense contractors, and all other military and community agencies that support military families.

Other provisions included in the compromise bill would:

  • Create a permanent fix for the Alternative Minimum Tax to prevent taxpayers from moving into higher tax brackets simply because of inflation—this fix was needed immediately to keep taxpayers from paying higher taxes on their 2012 income.
  • Permanently extend the Bush-era tax rates for all families earning less than $450,000.
  • Increase the tax rate on capital gains and some estates.
  • Freeze Congressional pay.
  • Extend federal unemployment benefits for one year.
  • Extend provisions in the expiring farm bill by one year. (This means milk prices won’t skyrocket, as you may have seen in the news.)

The compromise bill did not extend the lower payroll tax rate of 4.2% in effect during the past two years through economic stimulus legislation. Therefore, the payroll tax workers pay to support Social Security will immediately return to 6.2%. Workers will see this change in their first paycheck of 2013. Experts estimate that the family earning an average of $50,000 per year will pay an additional $1,000 in payroll taxes this year.

While the New Year’s Congressional action gives the government and taxpayers some breathing room, we’re not out of the woods yet. The temporary delay of the sequestration cuts will combine with other pending budget events to continue the fiscal uncertainty facing our Nation.

The Association appreciates the actions by Congress and the President to provide the fix to Medicare and TRICARE doctors. We remain concerned about the failure to address the potentially devastating sequestration cuts to both civilian and military programs that could have a negative impact on military families. While the delay in sequestration will temporarily protect some needed support services, it also continues the uncertainty, and a military community at war needs certainty that the Nation supports its service. We call on our Nation’s leaders to forge a more permanent solution that will preserve the strength of our service members and their families.

How do you feel about the outcome of the compromise bill and the negotiations surrounding it?

Joyce RaezerPosted by Joyce Raezer, Executive Director at the National Military Family Association

More money for military families in 2013

More money for military families in 2013Here’s some good news for the new year, and it’s not even here yet! Some military families will see additional money in their paychecks in 2013. The annual adjustment for BAH and BAS were recently announced. BAH and BAS? While you may not score points in Scrabble with either word, these are important acronyms for military families. BAH means Basic Allowance for Housing, and BAS is the Basic Allowance for Substance.

BAH is a nontaxable allowance provided to eligible service members. The allowance varies worldwide and is based on the median current market rent, average utilities (including electricity, heat, and water/sewer), and average renter’s insurance. BAH is also calculated for each pay grade, both with and without dependents. For 2013 the average increase in BAH for military families is about $60 per month. You can calculate your BAH rate for 2013 before it hits your service member’s paycheck. Remember, BAH is based on your service member’s duty station, which may not be the same zip code where you live. (There are some exceptions to this guideline.)

I used the calculator and noticed the BAH rate for 2013 for our family was actually less than our 2012 rate. Yuck. But not to panic. A key feature of the BAH program is rate protection. This means our BAH will not decrease. This ensures military families who have made long-term housing commitments in the form of a lease or contract are not penalized if the area’s housing costs decrease. However, new families assigned to the area will receive the 2013 rate.

BAS is also a nontaxable allowance and is intended to replace the rations historically provided to service members. BAS rates are tied directly to the United States Department of Agriculture’s calculation of the increasing price of food. This not an allowance to feed your family. It is an allowance to offset the cost of food for the service member only. Enlisted service members will receive $352.27 a month, up from $348.44 per month in 2012. Officers will receive $242.60 a month, up from $239.96 in 2012.

Is this what you expected for the new rates? Are BAH and BAS allowances a key part of your family’s budget?

katiePosted by Katie Savant, Government Relations Information Manager at the National Military Family Association