Attention All Military Retirees

[Grumpy]

I copied this from The Retired Enlisted Association's latest newsleter:

The Economic Stimulus and Military Retirees-The implementation of the new stimulus package may complicate tax filings for Military retirees for your 2009 taxes if you are not careful. Most working salaried families will be getting their stimulus tax reduction of $400 for an individual and $800 for a couple by a reduction of the amount of money that is withheld every pay period to pay your federal taxes. (If you are a non-working military retiree or survivor, the withholding will be lowered for your military pay or survivor annuity (SBP).
If you are receiving Social Security retiree payments and/or VA disability compensation you will receive a separate $250 payment for your portion of the stimulus package. Therefore, if you are a working retiree your federal tax withholding amounts will be lowered for both your job and your retired pay plus your $250 check if you receive social security or VA disability compensation. All this means is that you will end up under-withholding for 2009 and owe a much larger tax bill next year than you expected. You should go to your tax consultant (or your Turbo tax) to see now what changes you should make.

[DJD]

My Dad is retired and we talk about this stuff all the time (I see where I get it from!) He is a registered Democrat and even voted for Jimmy Carter! He says everyone can have a brain fart once in a while.

Man, I'm waiting for the other shoe to drop. I mean the new taxes that will be coming for fuel and "green" living. I know it's coming and when it does this tax reduction will be less than the new taxes. Not sure that was what everyone thought they were getting.

These gubment goons need to be replaced! Still to this day no huge spending cuts that will impact our economy has taken place. Lets see that instead of more taxes...sorry Grumpy I started to hijack your thread.
Great info!