Warning

 

Close

Confirm Action

Are you sure you wish to do this?

Confirm Cancel
BCM
User Panel

Site Notices
Posted: 3/18/2006 4:00:19 PM EDT
I will be heading to the sandbox (taxfree status) in the near future. I want to know if there are still tax deductions taken out of your pay or do you get the full amount in each check without deductions every two weeks?
Link Posted: 3/18/2006 5:40:46 PM EDT
[#1]
It is still taken out of your pay.
Link Posted: 3/18/2006 6:06:22 PM EDT
[#2]

Quoted:
It is still taken out of your pay.



No it's not, at least it never has been for me.  It will take them about a month to get it started, then you get all the money you normally give Uncle Sam, its quite cool.  
Link Posted: 3/18/2006 10:39:12 PM EDT
[#3]
Which branch, and active or reserve component?  Army National Guard gets it taken out, then you get another LES and deposit about a week later with the taxes returned.
Link Posted: 3/19/2006 2:05:03 AM EDT
[#4]
First off, being in the box does not mean tax free!!!  You must be out of the country for a 330 days during a 12 month consecutive period, this does not have to all be during the same calender year.  If you meet this, then your first $80K is tax free.  This does not however relieve you from paying social security and medicare taxes.
Link Posted: 3/19/2006 5:50:38 AM EDT
[#5]

Quoted:
First off, being in the box does not mean tax free!!!  You must be out of the country for a 330 days during a 12 month consecutive period, this does not have to all be during the same calender year.  If you meet this, then your first $80K is tax free.  This does not however relieve you from paying social security and medicare taxes.



Uhhhh, no!  You only need to spend one day in any area deemed eligible for Combat Zone Tax Exclusion to get the whole month tax free.  You must be thinking of civlian rules.  Also, there is no dollar limit for enlisted troops, and Officers get the first ~8000 a month or something ludicrous tax free.  www.military.com/Resources/ResourcesContent/0,13964,30959,00.html

Whether they take the federal tax out of your check is probably dependant on branch of service, unit, etc.  Trust me though, even one day in Iraq is enough to get the whole month tax free, that's my exact situation this month.  
Link Posted: 3/19/2006 9:41:52 AM EDT
[#6]
Unicorn, That is what I was thinking. I was going by sons LES. Now that explains the other deposit.
Thanks for straightening me out on that one.
Link Posted: 3/19/2006 4:06:36 PM EDT
[#7]

Quoted:

Quoted:
First off, being in the box does not mean tax free!!!  You must be out of the country for a 330 days during a 12 month consecutive period, this does not have to all be during the same calender year.  If you meet this, then your first $80K is tax free.  This does not however relieve you from paying social security and medicare taxes.



Uhhhh, no!  You only need to spend one day in any area deemed eligible for Combat Zone Tax Exclusion to get the whole month tax free.  You must be thinking of civlian rules.  Also, there is no dollar limit for enlisted troops, and Officers get the first ~8000 a month or something ludicrous tax free.  www.military.com/Resources/ResourcesContent/0,13964,30959,00.html

Whether they take the federal tax out of your check is probably dependant on branch of service, unit, etc.  Trust me though, even one day in Iraq is enough to get the whole month tax free, that's my exact situation this month.  



True, if we'd have stayed in theater just another three days, we'd have gotten another month tax free.  A buddy of mine had that happen when he was in Kosovo.  the command decided to have them stay just another day so that they'd have that month tax free too.
I've only ever seen the dolar limit for expats.  Expatriots, Americans living/working overseas like DoS employees, and contractors.
Link Posted: 3/22/2006 11:19:35 AM EDT
[#8]
The way it is for us...

They take out taxes like regular.  Then at the end of the month, you get a check for the *federal* and *state* taxes taken out.

The FICA tax and SSLI/SSGI arent given back.

Took them almost 2months+ to get it right.
Close Join Our Mail List to Stay Up To Date! Win a FREE Membership!

Sign up for the ARFCOM weekly newsletter and be entered to win a free ARFCOM membership. One new winner* is announced every week!

You will receive an email every Friday morning featuring the latest chatter from the hottest topics, breaking news surrounding legislation, as well as exclusive deals only available to ARFCOM email subscribers.


By signing up you agree to our User Agreement. *Must have a registered ARFCOM account to win.
Top Top