Commentary

February 7, 2014

Dollars and Sense

When considering separation programs that offer voluntary separation pay, Airmen should also consider the impact federal and state tax deductions has on the calculation. These tax deductions will reduce the actual amount you receive and could also have significant tax implications when filing 2014 taxes.

The fiscal 2014 VSP program entitles enlisted retention board-eligible Airmen 1.25 the rate of full separation pay. Those Airmen nonselected for retention by a board will be entitled to full separation pay at the standard rate. The formula for calculating full separation pay is as follows: monthly base pay multiplied by 12, then multiplied by the years of total federal military service and all whole months served over the total years, then multiplied by 10 percent. This calculation is applicable to Airmen nonselected for retention by a board. If the Airman elects to separate in lieu of meeting a board, then multiply the total amount achieved in the formula by 1.25.

Airmen should then consider any deductions from the estimated VSP amount. Tax deductions could reach up to 35 percent when considering all federal and state tax laws.

For additional counseling assistance, the 56th Comptroller Squadron encourages Airmen considering VSP to contact the finance customer service office, Airmen and Family Readiness Center and/or a tax specialist.

Coyote quote: “A person doesn’t know how much they have to be thankful for until they have to pay taxes on it.




All of this week's top headlines to your email every Friday.


 
 

 
Lightening-within-five

Lightning over Luke …

The F-35 Lightning II isn’t the only lightning striking over Luke Air Force Base. This strike, about five miles west of the Luke flightline, was captured on camera at 1:12 a.m. Aug. 12 at the jet engine test cell.
 
 

Program smooths change from military to civilian life

It can be difficult to find work in today’s economy, even more so for families that are moving to a new area or families that are transitioning from military to civilian life. One program available to veterans is the Workforce Investment Act, which can help veterans have a smooth transition to civilian work. The 56th...
 
 

New form second chance to do EPRs right

Without fail, every time I am around a group of young NCOs, there is one subject guaranteed to come up — the enduring question of “How can I write a stronger EPR for my Airman?” My answer to this question is fairly standard and is one that a chief shared with me many years ago....
 

 

Plan for final out

How many of you are prepared for life outside of the military? Seriously, if you were told tomorrow was your final out, what would you do? We are currently in an environment where Defense Department rollbacks are a serious issue we must all contemplate. Fewer officers are being commissioned. Last year there was only one...
 
 

News Briefs August 22, 2014

Commander’s call Brig. Gen. Scott Pleus, 56th Fighter Wing commander, will hold a commander’s call Monday in the Luke Air Force Base theater at 7 a.m. for Airmen, 9 a.m. for NCOs, 11 a.m. for senior NCOs, 1 p.m. for civilians, 3 p.m. for officers and 5 p.m. for those not able to make another...
 
 
Airman 1st Class 
JAMES HENSLEY

Commandant challenges students to be best

Airman 1st ClassJAMES HENSLEY Master Sgt. Sheris Poisson, 56th Force Support Squadron Airman Leadership School commandant, briefs students Aug. 12 about the active-shooter exercise Aug. 15 at Luke Air Force Base. Poisson asked ...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


Directory powered by Business Directory Plugin