Tag Archives: money

5 Easy Ways to Get Involved in Military Saves Week and Save Successfully

5 Easy Ways to Get Involved in Military Saves Week and Save SuccessfullyMilitary Saves Week (February 25 – March 2, 2013) is a chance for individuals to evaluate their saving status, take financial action to reach goals, and become part of a supportive environment of military savers. Everyone can take the Military Saves pledge, and if you’ve pledged in the past, you can renew your pledge and commitment to saving. Studies reveal that having a savings plan with specific goals can have beneficial financial effects, regardless of income level.

Here are 5 easy ways to get involved in Military Saves Week:

1. Take the Military Saves Pledge 
Pledge or re-pledge today! Those with a savings plan are twice as likely to save for emergencies and retirement as those without a plan. Join over 310,000 people who have already committed to save.

2. Assess Your Savings
Find out if you are saving in all the right places with this 12 step savings assessment.

3. Test Your Savings Knowledge
Take this savings quiz to reveal how much you understand about the realities of saving in America.

4. Share Savings Tips and Advice with Family and Friends
On Twitter and Facebook? Share your pledge and your best savings and financial tips with your family and friends. On Twitter, use hashtag #MSW2013. Get everyone to become a saver!

5. Share Your Savings Goal
We want to hear from you! What are you saving for? Post or tweet a photo of you with your savings goal to Facebook or Twitter. Download the “I’m Saving For…” sign and share your photo and savings goal today!

Military Saves Week is coordinated by Military Saves and is part of the Department of Defense’s Financial Readiness Campaign. Started in 2007, Military Saves Week is an annual opportunity for organizations to promote good savings behavior and a chance for individuals to evaluate their own saving status.

ccPosted by Christine Gallagher, Government Relations Deputy Director at the National Military Family Association 

Military families and Earned Income Tax Credit – what you need to know

Military families and Earned Income Tax Credit - what you need to knowFor many of us, tax season comes with a sinking feeling. The incomprehensible forms, piles of documents to sort through, and the unwelcome prospect of writing a large check to the IRS leaves us with a splitting headache.

However, tax season does not have to bring bad news. In fact, some military families may find that they are eligible for an income tax credit that will allow them to keep more of the money they have earned, thanks to the Earned Income Tax Credit.

The Earned Income Tax Credit (EITC) is a refundable tax credit for low to moderate income families. To qualify, your taxable income must fall below a certain threshold. For 2012, a married couple with two children may qualify for the EITC if their earned income and their adjusted gross income are below $47,162. Remember that allowances, such as Basic Allowance for Housing (BAH) are tax-exempt. Combat pay is normally not taxable but you can elect to have it included in your Earned Income if doing so increases the amount of your credit.

Intimidated? Don’t be. There are plenty of resources to help military families tackle tax season. The most important thing to remember is that in order to qualify for the EITC you must file a tax return, even if you do not owe any tax or are not required to file. For more information about the EITC, check out the IRS online guide for families and individuals.

Do you think you might qualify for the EITC? What other tax tips do military families need to know? 

eileenPosted by Eileen Huck, Government Relations Deputy Director at the National Military Family Association

We fight for military families: the Association’s 2013 priorities, Part 3

We fight for military families: the Association’s 2013 priorities, Part 3This is Part 3 of a series explaining the National Military Family Association’s legislative priorities for 2013. Read Part 1 and Part 2 here.

Some issues affecting military families can only be taken care of through Congressional action. We see most of the work on these issues being addressed through the House and Senate Armed Services Committees in the National Defense Authorization Act (NDAA), which sets the laws and regulations for Department of Defense (DoD) and the Services to follow. The funding of this legislation comes through the House and Senate Appropriations Committees with the Defense Appropriations bill and the Military Construction and Veterans Affairs Appropriations bill.

Congress did not pass the Appropriations bills for Fiscal Year 2013 (FY13), which began on October 1, 2012. They passed a Continuing Resolution or CR, which forced DoD to work on 2013 missions, projects, and programs with 2012 levels of funding. The current Continuing Resolution will expire March 27. While military paychecks are protected for 2013, essential services could shut down if the CR is allowed to expire. This isn’t the first year we have had the threat of a government shutdown.

Pass the NDAA FY14

This is why our first “ask” for Congress is to pass the National Defense Authorization Act for FY14 and the bills that fund this legislation by October 1 in order to eliminate the uncertainty faced by the military community.

Increase Impact Aid

If you have children attending public schools, you should be aware of how important Impact Aid funding is to local school districts that educate large numbers of military children. We’re asking Congress to increase the level of Department of Education Impact Aid funding to meet the Federal obligation to support school districts educating military children and continue to fund the DoD supplemental impact aid and grant program. Impact Aid funding has not kept pace with rising education costs.

Protect surviving spouses

Survivors of service members who have died on active duty or from a service-connected disability are unfairly penalized by having their Survivor Benefit Plan (SBP) annuity offset by the Department of Veterans Affairs Dependency and Indemnity Compensation (DIC) payment. Under current law, survivors who are eligible for both SBP and DIC must forfeit a dollar of their SBP annuity for every dollar of DIC received. Often the offset eliminates the SBP annuity altogether. We ask Congress to end the DIC dollar for dollar offset of SBP payments for surviving spouses. For more details on this issue, visit the Survivors section on our website.

Ease transitions for the whole family

DoD does not always need Congressional approval to improve or change policies. We are asking DoD to address the informational needs of military families transitioning out of the military by expanding the opportunity for spouses to attend transition classes with service members and tailor information to address family transition issues.

Support families with special needs

It can often take DoD a long time to implement programs mandated by Congress. In the NDAA FY13, Congress charged DoD to start a pilot program to provide therapy for some families with special needs. We want DoD to implement the new pilot program to provide Applied Behavior Analysis to ALL eligible TRICARE beneficiaries.

If you have questions about our priorities for 2013 or would like to provide us with information about how these issues will affect you and your family, please leave a comment below. As I mentioned in the beginning of this blog series, we are sharing your stories, your experiences, and your suggestions to improve the quality of life for military families.

These are not the only issues we will be advocating for. When a new challenge surfaces that affects military families, we will make sure it is brought to the attention of the policymakers who can make a difference. We are listening to you and for you. We are your voice.

kathyPosted by Kathleen Moakler, Government Relations Director at the National Military Family Association

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