Any Retirees out here? We lived almost entirely on DHs retirement pay and BAH for using the GI bill this past year. I worked part time but I didn't make much. Since retirement pay is non-taxable Im wondering if this means we are going to end up owing the IRS this year?
I'm not sure about retirement pay but I know when I was using my GI bill and getting money for being a VA work study both incomes were non taxable. I was a reservist too so I did file taxes at the end of the year because of that but I didn't have to claim my GI bill or VA work study money as an income since they were non taxable and considered benefits. Since I didn't have to claim those an an income I was on the low income bracket and didn't have to owe anything, as a matter of fact I got everything I paid in back.
I would just call up whoever you have do your taxes and ask them about it.
MH is going through the retirement process right now and everything that he has been given says that retirement pay IS taxable. Unless you're talking about VA benefits. Those are non-taxable. If this is the case, then no, you probably won't owe any taxes for the year.
yea you either collect retirement pay from the DOD (which is probably what your being told is taxable) OR you can collect from the VA. Generally one is higher than the other. The VA is non-taxable. We opted to go with the rating and pay from the VA. I should have specified what kind of retirement pay
Re: Retirement pay/taxes
I'm not sure about retirement pay but I know when I was using my GI bill and getting money for being a VA work study both incomes were non taxable. I was a reservist too so I did file taxes at the end of the year because of that but I didn't have to claim my GI bill or VA work study money as an income since they were non taxable and considered benefits. Since I didn't have to claim those an an income I was on the low income bracket and didn't have to owe anything, as a matter of fact I got everything I paid in back.
I would just call up whoever you have do your taxes and ask them about it.
yea you either collect retirement pay from the DOD (which is probably what your being told is taxable) OR you can collect from the VA. Generally one is higher than the other. The VA is non-taxable. We opted to go with the rating and pay from the VA. I should have specified what kind of retirement pay