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.


 
 

 

Mentoring fosters dreams, strengthens us

A few days ago while reading an online commander’s call, I came across an article dated Dec. 31, 2014, stating President Obama proclaimed the month of January 2015 National Mentoring Month. Although this topic is thoroughly discussed in our Air Force today, I felt compelled to write on its importance all the same. In a...
 
 

Have you joined the Air Force yet?

I enlisted into the Air Force in February of 1997. However, I didn’t join the Air Force until March of 1999. No, I’m not talking about the Delayed Enlistment Program. There was no doubt that after high school I would attend college. However, not having applied for any scholarships and realizing that I didn’t have...
 
 

TRICARE revises drug coverage for safety, use

WASHINGTON — Starting May 1, Express Scripts, the TRICARE pharmacy contractor, will screen all ingredients in compound drug claims to ensure they are safe and effective, and covered by TRICARE. This screening process is like the one TRICARE already uses for other prescription drugs, but it will now apply to the ingredients in compound drugs....
 

 
WHM

Chaplain’s thoughts …

  March is Women’s History Month. In honor of that I searched for some notable quotes by significant women for this article. I began my search in a rather old-school way; flipping pages in my “1001 Pearls of Spiritual ...
 
 
fo_LL

Fly Over: ‘LL COOL J’s PLATINUM WORKOUT’ and ‘Chappie′

In stores: ‘LL COOL J’s PLATINUM WORKOUT’ “Mama said, knock you out!” ~ LL Cool J LL Cool J is an award-winning hip hop artist whose songs have been heard all across the world. He has hosted the “Grammys” numerous...
 
 

Bring ‘invisible class’ into view

When I was a young boy, my father explained to me that there was dignity in work. He told me to always respect the worker regardless of how thankless or menial their job may appear to be. He said that you never know the burdens a person may be carrying, or the family members that...
 




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