You would think that withholding taxes from your new job after retiring from the military would be a pretty simple thing. It's not. And, if you don't get it right, you could be looking at stroking a check for $6,000 - $7,000 to pay the taxes for your first full year in retirement.
While you're on Active Duty, it is pretty easy to estimate how much your taxes will go up when you get a promotion. It won't be quite that simple after you retire.
When you receive a retro-active VA Disability rating of less than 50%, it's likely your taxable income will be reported incorrectly. As a result of the Strickland Decision, the IRS codified how you could fix that, in IRR 78-161.
Military members tend to step up and contribute to charities when Americans suffer. It's in our genes to help and serve. That doesn't mean you can't take full advantage of the tax code when you do help.
One of the really good deals you get on Active Duty is the ability to claim a state without an income tax as your residence (if you were stationed there). That will change when you retire and you may even have to pay income taxes before you retire.
Many Active and Retired Senior Military Officers and NCOs have parents who are required to take distributions from their retirement accounts. As a response to COVID-19, Congress is allowing taxpayers to skip the Required Minimum Distribution in 2020. But should they be skipped?
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