Many retired Senior Military Officers are surprised by the fact that they get a tax refund when they file their taxes for the year they retired. Some will assume that they have their withholding correct. They might be wrong as the refund might be due to excess Social Security withholding.
Getting promoted to the next rank and getting that extra pay when you are a junior military officer is exciting, but you'll want to make sure you're using the money in ways that maximize your long-term benefits. Check out four ways to optimize your extra income and adjust your finances.
By taking time to educate yourself on investment principles and start building your portfolio early in your career as a military officer, you may increase your chance of long-term success. In general, the earlier you start investing, the better - but here are some basics to consider.
Retired military members have the right to account for VA offset not taken from their retirement pay under the Strickland Decision and IRR-78-161. Correctly applied the change can save you hundreds of dollars in taxes. Make sure you or your financial advisor understand the rule.
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