Retirees get 13th paycheck this year
The Stars & Stripes reports that military retirees will get a 13th paycheck this year because of changes to the law;
The reason, explained Defense Finance and Accounting Service spokesperson Steve Burghardt, is that Congress changed the law this year to require that DFAS pay retirees on the first of each month, unless that day happens to fall on a weekend or a holiday.
In those cases, the payment is to be made on the last business day before the first of the month. Because New Year’s Day, Jan. 1, is always a federal holiday, that means that going forward retirees will always receive their January pay in the previous December.
So you know what they say about 13 being unlucky? That means you’re going to end up paying more taxes on your retirement pay than you have in the past. The Stars & Stripes makes it sound like it’s a windfall, but it could cost you if you teeter between tax brackets like I do. It probably means we’ll get our 1099Rs late, too. So forewarned is forearmed.
Category: Taxes, Veterans Issues
Great….thanks Congress….
Cool, more taxes to pay to display your patriotism!
The only difficult job our government is good at:
Getting blood out of a turnip.
PN: in Olde Country we call it borscht. Needs much vodka for it to be palatable.
🙂
That means that we will only get 11 checks in 2012.
I thought all VA benefits were tax free.
@ PurpleDragon – “I thought all VA benefits were tax free.”
Benefits can be….but retirement is not. Retirement can be offset by VA Disability [which is tax free]…but VA is in the midst of phasing in concurrent payments for those awarded 50% or better. Same goes for CRSC I believe.
@6
No, because the January check will always be issued at the end of December. At least until/unless they change the law so they’re paid after the holiday instead of before.
I remember an old lifer telling me in 68 that they would never be stupid enough to take any of our retirement benefits. Guess he was 1/2 right. EROWMER, USN, Ret.