The only thing certain is death and taxes

CAMP AS SALIYAH, QATAR

12.09.2013

Courtesy Story

Area Support Group - Qatar

CAMP AS SAYLIYAH, Qatar - Benjamin Franklin assured us that the only thing certain is death and taxes. As tax season approaches, there are a few things about which you need to be aware.

First, a fact: the Camp As Sayliyah Tax Center will open toward the end of January 2014 in Building 111 to assist you with the filing of annual state and federal taxes. Keep an eye out for more on this.

Next, is the extension of deadlines the Internal Revenue Service offers certain taxpayers. Some of us, grudgingly, must pay the IRS every year rather than receive a sack full of cash that we would then likely blow on the latest electronic gizmo.

The old adage, “Why pay something now when I can pay it later,” comes to mind (or perhaps I just made that up?) and the IRS breathes life into that adage through the tax extension it affords all service members, and federal employees and contractors serving in a combat zone in support of the armed forces.

Generally, the deadlines for performing certain actions applicable to taxes are extended for 180 days after the member returns from the combat zone, plus the number of days remaining in the tax filing season for that tax year. This is actually quite complicated. I recommend you visit the CAS Tax Center when it opens or the legal office with your individual questions before filing your taxes.

Additionally, and likely even more important is the tax exclusion. This, however, only applies to the uniformed services and is inapplicable to civil servants and contractors. Service members take advantage of tax-free basic pay (max $7,660/month) plus imminent danger pay. Come by the Tax Center or legal office with your questions.

Finally, service members, don’t forget to take advantage of placing some of those tax-free earnings into individual retirement accounts. Personal savings rates of Americans have steadily declined since the mid-1970s while personal debt has dramatically risen. It behooves us all to save for emergencies and retirement. For military members, investing in a Roth IRA while deployed is smart because you typically have less need to lower your taxable income since it is already lowered due to the deployment. Once back home in a wholly-taxed year, a traditional IRA may lower your taxable income at the expense of being taxed later when you remove those funds. The extension of deadlines also applies to funding IRAs. Everyone – not just service members – should consider an investment strategy best suited to their situation. Most banks offer free or reduced-rate financial planning for their customers, and an hour spent planning your financial future can reap you years of financial benefits.

The wise need not be the wizened. Take advantage of the filing extension if needed, and be vigilant with your financial planning earlier than later in life. For death and taxes may be certain, but the quality of life we will lead is not.

• Date Taken: 12.09.2013
• Date Posted: 12.23.2013 00:28
• Story ID: 118581
• Location: CAMP AS SALIYAH, QA