Great information for all military retirees who will be wondering what is going on with their pay at the end of September and the end of the year. Though early checks are nice there can be complications to consider. Thanks to Louise for pointing out this information.
According to information provided at www.Military.com, paydays for military retirees and those who receive portions of retired pay are changing for September and December,as the Defense Finance and Accounting Service (DFAS) changes its pay schedule to comply with the 2011 National Defense Authorization Act.
This year payments normally scheduled for Oct. 3, 2011 will be issued on Sept. 30, 2011 and payments normally scheduled for Jan. 3, 2012, will be issued on Dec. 30, 2011. For the calendar year 2011, this means military retirees will receive 13 rather than the normal 12 payments.
Retirees should be aware that this extra paycheck could affect their taxes and therefore they should speak with a tax advisor, the Internal Revenue Service or their state tax authority to determine if their tax withholding will satisfy federal and state income taxes when they file returns next year. Need more details? See the Military Advantage blog.
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