Things are a little busy here at Retired Pay. It’s year-end time and a lot has to be finished up in the remaining week or so of 2011. But I get so many inquires,starting around this time of year regarding retired military pay issues that I thought I’d just throw this information up in an effort to try to make things easier for my fellow military (active duty and reserve forces) retired comrades.
As many of you know, but a few have a problem with accepting, virtually all your payroll and tax data are moving into the electronic, online world. Asking payroll and tax information from non-official sites like mine is kind of a waste of time, because it is all available to you, online, direct from the “horse’s mouth” so-to-speak.
When you have an issue, figuring out why your pay has changed, where your 1099R is, where you can get a copy of your 1099R and similar questions, I advise you to go du=irect to the DFAS online source for retired military pay data …
Here’s their latest year-end summary:
Retiree Tax Statements: What You Need to Know
In the midst of the holiday hustle and bustle, it’s easy to forget tax time is just around the corner. When the decorations are put away and you’ve made your New Year’s resolution, it will be time to get ready to file your tax return. DFAS sends out tax statements and annual Retiree Account Statements from mid-December through January. As part of this effort, we’ve put together this survival guide. Use it to learn what to expect, when to expect it, and where to go if you have questions or don’t receive your tax statement.
Get Your Statements Early on myPay
If you are creating an account for the first time, or requesting a new password, we will need your current address on file. If we do not have your current address, you won’t get your temporary password when we mail it to you.
If your temporary password doesn’t arrive within 7-10 business days, please update your contact information with DFAS and then request another temporary password from myPay.
Updating Contact Information
To ensure your tax documents reach you on time, be sure to notify us of any changes to your mailing address if you receive a hardcopy 1099R in the mail, or your email address if you receive your 1099R electronically.Mailing address changes must be submitted in early December to take effect before tax statements go out. If you missed the cutoff, you can view statements in myPay or request a duplicate 1099R. But you’ll need to update your address first.
You can check or change your correspondence and email address by logging in to your myPay account. If you don’t have a myPay account, your mailing address change will take more than 30 days to process.
13 Payments in 2011
You’ll notice a total of 13 payments on your 1099R tax statements this year. This isn’t a mistake. The 2011 National Defense Authorization Act required a pay schedule change that resulted in retirees receiving 13 pay checks instead of the normal 12 in the 2011 tax year. This change may increase tax liability for some. DFAS customer service representatives are not tax experts and cannot provide tax advice. Please speak with a tax advisor, the Internal Revenue Service or a state tax authority if you have concerns about how this will affect your 2011 tax returns.
Annual Retiree Account Statements
Most retirees will receive two annual Retiree Account Statements (RAS) by January 31, 2012. If you get them by mail, the envelope will also contain your 1099R and Retiree Newsletter.
Please be sure to review your RASs to see how your pay will change in 2012 The statement dated Dec. 2 shows the new payment amount as of Dec. 30, including the cost-of-living adjustment for 2012. And the statement dated Dec. 12 shows the new payment amount as of Feb. 1, including any federal income tax adjustments caused by changes to the 2012 tax tables.Understanding Your RAS
Didn’t Get Your 1099R?
If you normally get a hard copy of your 1099R in the mail and do not receive it by January 31, 2012, it could be for one of these reasons:1. When you create a myPay account, you automatically get an electronic 1099R only, unless you “turn on hard copy 1099R” in myPay.
2. We may not have your correct mailing address on file.
Please make sure we have your current address before you request another 1099R. You can then request a new copy of your 1099R by following the instructions on our “Getting a 1099R” page.
Adjusting Your Tax Withholding
If after reviewing your 1099R and annual RAS you find that you need to make adjustments to your tax withholding for the 2012 tax year, you can do so on myPay, or by submitting a new W4 or DD 2868 available on our forms page. How to update your Federal Income Tax Withholding