[Jughead]

Jaded, on 11 February 2010 - 06:54 PM, said:

If you invest a tax-free 5k in your TSP, and 20 years later you're at retirement with an additional 5k in earnings, you end up with 5k tax free and 5k taxable. If you were to invest the same tax-free 5k in just a normal brokerage, and ended up at retirement with the same 5k earnings in that normal brokerage, you'd end up with a 5k tax free and 5k taxable. Is this correct?

No, because that same $5K would be lessened by the taxes you'd pay along the way. If you acheived that growth solely in the form of capital gains at the end of the 20 years, then the amounts would be the same. If (as is FAR more likely) your gains include dividends and/or capital gains along the way, you pay taxes on it as you go, reducing the amount available for compounding. "Tax deferred growth" is less attractive than "tax free growth," but once you've maxed your Roth, the TSP can be an effective way to get the deferral.

EDIT to add: Oh, and unless you withdraw the entire amount at the end of the period, the tax deferral continues on each dollar until you actually withdraw it....

This post has been edited by Jughead: 12 February 2010 - 01:19 AM

[Finance_Guy]

Bluto, on 11 February 2010 - 01:42 PM, said:

Now I'm being told that the voucher wasn't processed until Jan 4th of this year however I was paid in Dec and apparently I won't get the W2 until next year. Doesn't make sense to me.

If you were Paid in Dec it's considered 2009 income and you should get a W2 for 2009.

Here's an update on the myPay W2s for Travel Payments (DITY & Civilian Pay). Appears they had a data load problem.

ALCON,

We were just notified by DFAS that the Travel and Miscellaneous W-2 link has been turned off again. After several travelers reported they couldn't find their W-2's on line they discovered there was a problem with the initial load. They expect to have the files reloaded and the link turned back on by end of day Tuesday, Feb 16. We'll let you know once the link is actually activated again.

[afthunderchief16]

Was wondering if FG or anyone else might be able to answer my question I found when I started filing my return.

For my PCS W2 the AF has me down as a CO resident for the state taxes portion even though I claim TX for residency. There were no taxes taken out but they still have it under the state and local wages box.

Does this really matter for anything? Should I even waste my time going to finance to get an amended W2? Thanks much

[KM]

afthunderchief16, on 17 February 2010 - 07:55 PM, said:

For my PCS W2 the AF has me down as a CO resident for the state taxes portion even though I claim TX for residency. There were no taxes taken out but they still have it under the state and local wages box.

Does this really matter for anything? Should I even waste my time going to finance to get an amended W2? Thanks much

Unfortunately, it matters. If your W-2 has CO for your state, CO will think you owe them taxes. It would probably be less hassle to get the amended W-2 than to argue with the state of CO later about whether or not you owe them money.

[Finance_Guy]

KM, on 18 February 2010 - 12:58 AM, said:

Unfortunately, it matters. If your W-2 has CO for your state, CO will think you owe them taxes. It would probably be less hassle to get the amended W-2 than to argue with the state of CO later about whether or not you owe them money.

I'm asking DFAS what the rule is and if you need one changed, what that process is. I want to say the default is the new state you PCS'd to, but logically it should normally be the same state you claim on your pay record.

[Finance_Guy]

afthunderchief16, on 17 February 2010 - 07:55 PM, said:

For my PCS W2 the AF has me down as a CO resident for the state taxes portion even though I claim TX for residency. There were no taxes taken out but they still have it under the state and local wages box.

I'm told you should send the request DLI-W2-Inquiries@dfas.mil so they can send a replacement W2. They can make the changes up until March 15th. After that, they can only make changes with a W2C.

Provide them your info from the DITY Move. They may need your SSAN and be sure to let the know the correct state you need on the W2--should match what is on your LES.

[Dupe]

KM, on 18 February 2010 - 12:58 AM, said:

Unfortunately, it matters. If your W-2 has CO for your state, CO will think you owe them taxes. It would probably be less hassle to get the amended W-2 than to argue with the state of CO later about whether or not you owe them money.

Bigger picture: if CO was only on your PCS W-2 and you're a Texan for every thing else in your life, you likely didn't earn enough on that PCS to be required to file taxes with CO. Look up the filing requirements for CO to decide if you want to go through the asspain of getting an ammended W-2.

[USFcrusader09]

by the way, my Travel W-2 is up on MyPay if anyone else was waiting...

[BattleRattle]

Does anyone have experience filing 'Reserve Expenses' as an adjustment on their tax returns? I want to make sure I deduct/adjust for everything correctly.

[FlighHy]

No luck in a search, so here I go:
I'm a Maintenance Officer and got my PPL last year. Are my expenses eligible for the Lifetime Learning Credit if the flight school is and "eligible educational institution?" The gray area is "for all years of postsecondary education and for courses to acquire or improve job skills", where I would argue that it improves my job skills. Thanks in advance!

http://www.irs.gov/p...blink1000178168