stick Posted May 27, 2014 Share Posted May 27, 2014 Just in case there are any C-5/C-17 types that were going to try and touch downrange during the month they separate like I was... http://www.irs.gov/uac/Military-Pay-Exclusion-%E2%80%94-Combat-Zone-Service Enlisted can hit jackpot, but officers can't! Link to comment Share on other sites More sharing options...
ComingLeft Posted May 27, 2014 Share Posted May 27, 2014 You can double dip GS while you're on terminal, but no working for a govt contractor until officially retired or separated... I asked the JAG about this when I was applying. Their answer is to get approval for additional employment. Typically there are no issues unless you go work for a contractor. Posted from the NEW Baseops.net App! Link to comment Share on other sites More sharing options...
BONE WSO Posted June 3, 2014 Share Posted June 3, 2014 Two more ways to keep more of your VSP shielded from taxes. First, pay your January mortgage payment for all of your houses in December. This will allow you to deduct that extra interest this year. Next, pay all of your property taxes for next year this year. So far I have: put $17,500 in traditional TSP, put $5500 in wife's traditional 401k, pay house payments for 2 houses month early, about $2000, and pay property taxes for primary and rental houses this year, which is around $8000. These efforts will shield $33,000 from taxes. Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
Jughead Posted June 3, 2014 Share Posted June 3, 2014 Two more ways to keep more of your VSP shielded from taxes. First, pay your January mortgage payment for all of your houses in December. This will allow you to deduct that extra interest this year. Next, pay all of your property taxes for next year this year. So far I have: put $17,500 in traditional TSP, put $5500 in wife's traditional 401k, pay house payments for 2 houses month early, about $2000, and pay property taxes for primary and rental houses this year, which is around $8000. These efforts will shield $33,000 from taxes. You probably realize this, but for anyone who hasn't used "tax timing" before: keep in mind in BONE WSO's example, you haven't really *shielded* the income, you've simply taken the deductions in the year where you (presumably) have a higher marginal tax bracket. You'll pay more tax in the next year, since you will no longer have the deductions for anything you "moved" (via early payment) to the current year. You're still better off, *if* your tax bracket is higher this year than next (as it well may be with a large, one-time income source such as VSP--especially if the next year reflects a period of unemployment between AD & civilian job)--but you're not escaping the tax, just timing it for max advantage. (Same can be said for the TSP & 401(k) contributions--that's why they're called "deferred contributions," it's the tax that's deferred until withdrawal.) Link to comment Share on other sites More sharing options...
BONE WSO Posted June 3, 2014 Share Posted June 3, 2014 In the year after doing this you will probably end up taking the standard deduction instead of itemizing. After doing some research, it seems that many people alternate taking itemized deductions one year and the standard deduction the next to maximize your itemized deductions. Sent from my iPhone using Tapatalk Link to comment Share on other sites More sharing options...
FUSEPLUG Posted June 5, 2014 Share Posted June 5, 2014 There's been talk about the AF allowing VSP folks to stick around for a few extra months to help out with the impending "manning crisis." At first we scoffed at the likelihood, but it's seeming like more and more of a possibility. Would it not make financial sense to make sure that the VSP check doesn't hit one's bank account until after 31 Dec? This would mean that lump sum from Uncle Sam is added to a 40K first-year First Officer's paycheck (fingers crossed) in 2015, as opposed to a 75K-ish Air Force salary accrued up 29 September '14. Thoughts? Am I missing anything here before I sadistically volunteer to to stick around 3 months longer? Link to comment Share on other sites More sharing options...
Jughead Posted June 5, 2014 Share Posted June 5, 2014 (edited) Thoughts? Am I missing anything here before I sadistically volunteer to to stick around 3 months longer? Your logic may or may not be sound. Speaking in vast generalities (every situation will be unique): If you're not starting work until after 1 Jan, then yes, keeping AD pay through 2014 is good for the bottom line, and getting the lump sum in 2015 with the presumed smaller overall income could be a good tax move. If, however, the choice is "start now or start in Jan at XXX Airlines," then you're giving up 4 - 7 months of seniority--that will likely cost you more dollars in the long run, and will absolutely cost you QoL. The dollars part is fairly straightforward to calculate, albeit with some assumptions required. The QoL, only you can answer. Beyond the QoL on the airline side, what's your QoL now (i.e., why are you getting out)? If you like what you're doing now, great!, but, if you're getting out because you can't stand the AF... why wait? Lastly: as many times as Big Blue has turned things around on this, how much do you trust such a guarantee? How much do you believe that any Stop-Loss (as many have speculated is coming) won't include VSP'ers who haven't actually left yet? Rolling the dice on that one, in my book.... All just IMHO.... EDIT: minor grammar Edited June 5, 2014 by Jughead Link to comment Share on other sites More sharing options...
FUSEPLUG Posted June 5, 2014 Share Posted June 5, 2014 Lastly: as many times as Big Blue has turned things around on this, how much do you trust such a guarantee? How much do you believe that any Stop-Loss (as many have speculated is coming) won't include VSP'ers who haven't actually left yet? Rolling the dice on that one, in my book.... All just IMHO.... EDIT: minor grammar Thanks for the feedback. That last part went through my head too. I thought I was just being paranoid. Link to comment Share on other sites More sharing options...
AnimalMother Posted June 5, 2014 Share Posted June 5, 2014 I think one lesson we've learned here is that if there's a way AFPC can screw you over, they will find it and execute. Extricate your ballsack from the vice ASAP and don't trust one word that comes out of their mouth. Sure, sticking around past 1 Jan may save you a few bucks, but it very well may cost you a testicle or two. That's not a good deal by my calculations. Someone else please check my math on this. 1 Link to comment Share on other sites More sharing options...
Fuzz Posted June 7, 2014 Share Posted June 7, 2014 So you want to stay in till the beginning of next year? Sounds like a great way to end up helping your wing fill that 4-6 month CAOC tour that just dropped, which is also conveniently how much time you have left. Link to comment Share on other sites More sharing options...
guineapigfury Posted June 7, 2014 Share Posted June 7, 2014 So you want to stay in till the beginning of next year? Sounds like a great way to end up helping your wing fill that 4-6 month CAOC tour that just dropped, which is also conveniently how much time you have left. As an added bonus, no more combat pay at the Deid after June! Link to comment Share on other sites More sharing options...
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