Ebony zer Posted October 17, 2012 Share Posted October 17, 2012 This is probably a question for finance guy. When you elect to take a pay advance when you PCS, when would you be taxed on the income? I will be deployed all 12 months in 2012 so I have zero taxable income. I’m trying to figure out if I can take 3 months of advance pay in December while it’s tax free, then pay it back next year resulting in essentially 9 months of taxable income in 2013? Any help is appreciated. Link to comment Share on other sites More sharing options...
itsokimapilot Posted October 17, 2012 Share Posted October 17, 2012 It's an advance on pay. You won't be taxed on the advance when you receive it. You get taxed on your income not the loan. It's the same as if you went to a bank and got a loan except you won't pay any interest on this loan. It's a pretty sweet deal. Link to comment Share on other sites More sharing options...
Ebony zer Posted October 17, 2012 Author Share Posted October 17, 2012 Damn! I thought I found a sweet deal. For some reason I thought the last time I took out an advance pay it reflected on my W2 that same year. Oh well. Link to comment Share on other sites More sharing options...
itsokimapilot Posted October 17, 2012 Share Posted October 17, 2012 Damn! I thought I found a sweet deal. For some reason I thought the last time I took out an advance pay it reflected on my W2 that same year. Oh well. Don't just take my word on this. Talk to your 'ahem' finance office. It is an advance, you haven't earned it yet. I've taken the PCS advance once and I don't recall paying any tax on the advance. Good luck. Link to comment Share on other sites More sharing options...
Muscle2002 Posted March 12, 2013 Share Posted March 12, 2013 Don't just take my word on this. Talk to your 'ahem' finance office. It is an advance, you haven't earned it yet. I've taken the PCS advance once and I don't recall paying any tax on the advance. Good luck. I was told by my finance office that I could not receive advance pay because I have a government travel card...is this true? Link to comment Share on other sites More sharing options...
ThreeHoler Posted March 12, 2013 Share Posted March 12, 2013 I was told by my finance office that I could not receive advance pay because I have a government travel card...is this true? Not true in my experience PCSing several times. Link to comment Share on other sites More sharing options...
Gravedigger Posted March 12, 2013 Share Posted March 12, 2013 Absolutely not true. Should be one of the many items on your list of PCS entitlements from vMPF initial assignment briefing. Link to comment Share on other sites More sharing options...
osulax05 Posted March 12, 2013 Share Posted March 12, 2013 I had gotten an advance for every PCS up until recently when Little Rock gave me the run around in 2011. Apparently AMC directed no advances for PCS'. I was at the schoolhouse so I got around it but they were not going to give in for AMC assigned folks. Link to comment Share on other sites More sharing options...
Lord Ratner Posted March 12, 2013 Share Posted March 12, 2013 (edited) I had gotten an advance for every PCS up until recently when Little Rock gave me the run around in 2011. Apparently AMC directed no advances for PCS'. I was at the schoolhouse so I got around it but they were not going to give in for AMC assigned folks. No, what you are dealing with is a confused finance troop. They made the same mistake with me. Due to everyone having a GTC, no PCS or TDY advance payments are authorized. Think of this like an accrual voucher that you file before ever leaving. Those are gone. What you need to specifically ask for is a Pay Advance, which is authorized (1 month for O's, 2 with CC signature) as part of a PCS. Remember, the 19 year old is generally mis-quoting an email his buddy told him about when they were closed for training. And the E-7 who shows up after is mis-quoting the same email that he forwarded to the nineteen year olds without fully reading it. Edited March 12, 2013 by Lord Ratner Link to comment Share on other sites More sharing options...
Finance_Guy Posted March 12, 2013 Share Posted March 12, 2013 I was told by my finance office that I could not receive advance pay because I have a government travel card...is this true? There are two types of advances when you PCS.... One is called "advance pay" which is where you can take up to 3 months of your basic pay minus deductions and pay it back over up to 24 months with special approval. The standard payback is 12 months with no special approvals. The other is "advance travel pay" or as some call it, "advance DLA". It is written in the law that if you have a gov't travel card then you are to use that for all your travel related expenses and there should be no advances paid out when a GTC is in hand. It is part of that keeping our cash and letting Citibank front the money. So, there are different views out there between the commands and AMC's position is to follow the SECAF and CSAF policy to not pay advances when a person has a GTC. Other commands may differ or just ignore it. My son was an E-4 with at GTC with a PCS from CONUS to OCONUS, drove half way across the U.S., flew part way across the U.S., then hit the rotator and then had TLA in OCONUS. Wife and two kids and used his GTC the entire time and DID NOT NEED a DLA advance. So for all those bitching about your DLA advance, just stop, use your GTC (which AF gets rebates), then you'll get it at your new base. If you really need some money and have a GTC, then get the advance pay to get you by. Finance offices are still giving out the regular advance pay. Link to comment Share on other sites More sharing options...
Muscle2002 Posted March 12, 2013 Share Posted March 12, 2013 So for all those bitching about your DLA advance, just stop, use your GTC (which AF gets rebates), then you'll get it at your new base. Nobody was bitching. Thank you for the clarification on the policy, though...I'll just use the card. Link to comment Share on other sites More sharing options...
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