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Program encourages troops to save money, reduce debt
by Gerry J. Gilmore
American Forces Press Service
2/15/2007 - WASHINGTON (AFNEWS) -- A new Defense Department program encourages
servicemembers to become better money managers by paying off or avoiding credit card debt and starting savings accounts, a
senior official said here Feb. 15.
"Military Saves" is an ongoing, DOD-wide program that also sponsors money
management seminars titled, "Moneywise in the Military," held at military installations across the country, said Leslye A.
Arsht, deputy undersecretary of defense for military community and family policy.
"We want financial planning and financial strategies to become
a part of everyday life" for servicemembers and their families, Ms. Arsht said.
Each seminar features the insights
of money management expert Kelvin Boston, host of the PBS television series, "Moneywise," as well as other sessions that discuss
the proper use of credit, savings and investment strategies, home ownership and other topics.
The first "Moneywise
in the Military" seminar, held in September at Walter Reed Army Medical Center here, attracted more than 200 servicemembers
and military spouses, Ms. Arsht said.
Participants "listened to experts give them tips and strategies to use to start
this kind of (financial) planning that would put them on this positive path to managing their money in a proactive way," she
said. "Many servicemembers went away saying they learned a lot of things they didn't know."
The second "Moneywise
in the Military" seminar was held Jan. 31 on Fort Dix, N.J., and it drew more than 400 servicemembers and military spouses.
The Navy will kick off its "Military Saves Week" activities by holding a "Moneywise in the Military" event in San Diego on
Feb. 24.
The Defense Department's "Military Saves" program also offers a Web site, www.militarysaves.org, where servicemembers can access financial management information and register for a money management plan, Ms. Arsht said.
When servicemembers are distracted by financial problems, it negatively affects military readiness, Ms. Arsht said.
The state of a servicemember's personal finances also affects security clearances, she added.
However, servicemembers
with money problems shouldn't feel embarrassed or afraid to step forward to obtain help that is free and readily available
through military channels, Ms. Arsht said.
"All the command wants is for everyone who is in the service to be successful,
and having debt and worry keeps you from that," she said. "Everyone along the command chain recognizes that this is a problem.
(But) people make mistakes and make bad choices.
"You can work to fix it. And then, once you work to fix it, you can
put yourself on a path to financial success that will keep you from doing that again," Ms. Arsht said.
The "Military
Saves" program officially kicks off during "Military Saves Week," Feb. 25 through March 4, Ms. Arsht said. "Military Saves"
is part of a national initiative called "America Saves," she said, that urges Americans to become better stewards of their
personal finances.
David S.C. Chu, undersecretary of defense for personnel and readiness, initiated planning for the
"Military Saves" program more than a year ago, Ms. Arsht said.
The program's goal is for servicemembers to become
better managers of their personal finances, and in doing so avoid money-related problems and worries that can distract them
from performing important national security missions, she said.
"We want financial planning and financial strategies
to be part of everyday life," she said. "You start now and keep doing it and it becomes a habit."
Cost-of-Living Allowance (COLA)
As a requirement of military service, you are required to move about the country --often involuntarily. During your career,
you are likely to be assigned to a variety of low-, moderate- and high-cost locations. Although private sector pay scales
tend to reflect local living costs in U.S. locations, military pay tables do not. To make up for this imbalance, you are eligible
to receive a cost-of-living allowance (COLA) if you are stationed in certain "high-cost" locations in the continental United
States (CONUS).
COLA EligibilityYou qualify for COLA under any of these conditions:
- You are assigned to a high-cost area in the continental United States (CONUS). As of this writing, there are 63 such
locations (military housing areas, or MHAs) in the U.S.
- You are assigned to an unaccompanied tour of duty outside the continental United States if the primary dependent of the
member resides in a high cost area in the continental United States.
- It is determined that your primary dependent must reside in a high cost area in the continental United States due to your
duty location or other circumstances.
Important details
- CONUS COLA is based on the zip code of your duty station, not your home address.
- CONUS COLA is a taxable allowance; an amount is added to cover an average income tax rate.
- COLA is computed separately for members with and without dependents.
Calculate Your 2007 CONUS COLA Payment
To figure out if you qualify for a CONUS COLA payment, follow these five easy steps:
- Check off whether you have a dependent or not.
- Select your pay grade.
- Select your minimum Time in Service.
- Select your location.
Note: If your location is not listed, you are not eligible for a CONUS COLA
payment.
- Click on the "Submit" button to find out how much you should be paid.
You can hit the "Reset" button at any time if you make a mistake.
| 2006 CONUS COLA Payment Calculator |
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Electronic Tax Statements Available on myPay
Week of January 01, 2007
DFAS customers with myPay access will be able to retrieve their 2006 tax statements electronically up
to two weeks sooner than those relying on regular mail delivery by using myPay. Customers can view and print W2s and 1099Rs
anytime. The printable statements are approved by the Internal Revenue Service. New users and those who have forgotten their
personal identification numbers may request a new PIN at https://mypay.dfas.mil. To learn about taxes and personal finances, visit the Military.com Finance Center.
Subject: One time tax credit on 2006 Return
This is from CNNMoney.com.
A
SPECIAL ONE TIME TAX CREDIT ON YOUR 2006 TAX RETURN
http://money.CNN.Com/2006/05/25/news/telephonetax_refund/index.htm
When it comes time to prepare and file your 2006 tax return,
make sure you don't overlook the "federal excise tax refund credit." You claim the credit on line 71 of your form 1040. A
similar line will be available if you file the short form 1040A. If you have family or friends who no longer file a tax return
AND they have their own land phone in their home and have been paying a phone bill for years, make sure they know about this
form 1040EZ-T.
What is this all about? Well the federal excise tax has been charge to you on your phone bill for years.
It is an old tax that was assessed on your toll calls based on how far the call was being made and how much time you talked
on that call. When phone companies began to offer flat fee phone service, challenges to the excise tax ended up in federal
courts in several districts of the country. The challenges pointed out that flat fee/rate phone service had nothing to do
with the distance and the length of the phone call. Therefore, the excise tax should/could not be assessed.
The IRS
has now conceded this argument. Phone companies have been given notice to stop assessing the federal excise tax as of Aug
30, 2006. You will most likely see the tax on your September cutoff statement, but it should NOT be on your October bill.
But
the challengers of the old law also demanded restitution. So the IRS has announced that a one time credit will be available
when you and I file our 2006 tax return as I explained above. However, the IRS also established limits on how BIG a credit
you can get. Here's how it works.
If you file your return as a single person with just you as a dependent, you get
to claim a $30 credit on line 71 of your 1040.
If you file with a child or a parent as your dependent, you claim $40.
If
you file your return as a married couple with no children ,you claim $40.
If you file as m arried with children, you
claim $50 if one child, $60 if two children.
In all cases, the most you get to claim is $60 - UNLESS you have all your
phone bills starting AFTER Feb 28, 2003 through July 31, 2006 (do not use any bills starting Aug 1, 2006.), then you can add
up the ACTUAL TAX AS IT APPEARS ON YOUR BILLS AND CLAIM THAT FOR A CREDIT.
Now if you have your actual phone bills
and come up with an ACTUAL TAX AMOUNT, you cannot use line 71 on your tax return. You have to complete a special form number
8913 and attach it to your tax return.
Individuals using the special from 1040EZ-T will have to attach this form 8913
also.
One final point - this credit is a refundable credit. That means you get this money, no matter how your tax return
works out. If you would end up owing the IRS a balance, the refund will reduce that balance you owe. If you end up getting
a refund, the credit will be added and you get a bigger refund by that $30 to $60, depending on how many dependents are on
your return.
Remember: Not applying for scholarships is like turning down free money. Get started on your search for scholarships
today - visit the Military.com Scholarship Finder.
Homefront America Sponsors Essay Contest
Week of February 26, 2007
Homefront America is hosting a scholarship essay contest awarding $1,000 to 25 military dependent children.
This year's essay topics focus on patriotic and military themes. Contestants are asked to submit essays on one of four subjects:
(1) America ... It's a Wonderful Country; (2) Turning Challenges into Opportunities; (3) Why I am Proud to be an American;
or (4) My Dad/Mom ... My Hero. Essays are due by April 23, 2007, and should not exceed 500 words. They will be judged based
on content, originality, grammar and spelling. Winners will be announced in May. Full instructions and application procedures
are available at the Homefront America Website, www.homefrontamerica.org.
DoD to Cancel Remote Home Schooling
The Department of Defense Education Activity will discontinue its Remote Location Home School
Program beginning in school year 2007-2008, DODEA officials announced Jan. 25. "We understand this unique program is valued
by our families," said Joseph D. Tafoya, DODEA director. Unfortunately, with the funding allocation and grants expiring at
the end of school year 2006-2007, we will have to discontinue it, he said. DODEA officials manage the education programs for
Defense Department family members who would otherwise not have access to a high-quality public education. Although operating
a home-schooling program is outside their directed mission, officials said, the DODEA staff has administered it since school
year 2001-2002, when the agency received the first in a series of unsolicited allocations and grants to support the program.
Military Spouse Scholarship Program Expanded
Week of January 29, 2007
The National Military Family Association (NMFA) has announced a new partnership with the Military Channel
to expand the Association's Joanne Holbrook Patton Military Spouse Scholarship Program. The scholarships awarded
to military spouses to obtain professional certification or to attend post secondary or graduate school. Spouses of Uniformed
Servicemembers (active duty, National Guard and Reserve, retirees, and survivors) of any branch or rank are eligible to apply.
Scholarship applications are accepted online January 15 through March 15, 2007. For more information, visit www.nmfa.org/scholarship.
2007 Active Duty GI Bill Payment Rates
Week of January 08, 2007
The Department of Veterans Affairs has released the fiscal year 2007 payment rates which went into effect
on October 1, 2006. Each year in October the GI Bill payment rates increase to meet the growing cost of education. Although
the past years have seen larger increases in the payment rates, this year's modest rate increase has pushed the full-time
payment rate to $1,075 a month. Click here to see a chart
Air Force
Air Force Family Education Programs
The Air Force offers the following Education Programs for its Spouse and Family members.
Servicemember's Opportunity Colleges (SOC) colleges and universities are dedicated to helping your family
and you get college degrees. You can take courses in your off-duty hours at or near military installations in the United States,
and overseas.
Visit the official SOC website for more details.
Air Force Aid Society (AFAS)
General Henry H. Arnold Education Grant ProgramThe centerpiece of the Air Force Aid Society's education initiatives
is the General Henry H. Arnold Education Grant Program which provides grants to selected sons and daughters of active duty,
Title 10 AGR/Reserve, Title 32 AGR performing full-time active duty, retired, retired reserve and deceased Air Force members;
spouses (stateside) of active duty members and Title 10 AGR/Reservists; and surviving spouses of deceased personnel for their
undergraduate studies. The value and success of this program, is demonstrated in the 74,679 grants disbursed since the first
awards were made for the 1988-1989 academic year. In recognition of escalating college costs, the Society will increase the
award amount for the 2006-2007 grants to $2,000 for all qualifying applicants.
This grant program remains competitive in its need-based selection criteria, uniquely tailored to recognize the proper
weighing of family income and education cost factors, and is administered by ACT Recognition Program Services. ACT, located
in Iowa City IA, is an independent, not-for-profit organization with over 40 years experience in providing support services
to scholarship sponsors.
Awards for the 2006-2007 academic year will be announced in June 2006. Use of funds is limited to tuition, books and fees,
or other direct educational expenses.
See the official General Henry H. Arnold Education Grant Program website for more details and to learn how to apply.
General George S. Brown Spouse Tuition Assistance Program (STAP)
The purpose of the Spouse Tuition Assistance Program (STAP) is to provide partial tuition assistance for spouses of Active
Duty airmen or officers, who accompany members to overseas locations and will be attending college programs. The focus of
the program is on the completion of degree or certificate programs that provide increased occupational opportunities for spouses.
The program provides tuition Assistance (TA) at a rate of 50% of unmet tuition charge per course, with a maximum of $1,500
per academic year and a term maximum, which is calculated by dividing the annual maximum ($1,500) by the number of terms within
the academic year. For purposes of this program, "academic year" is defined as the 12-month period beginning August 1 through
July 31 of each year.
Visit the official General George S. Brown Spouse Tuition Assistance Program (STAP) website for more details on how to apply.
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