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Posted: 10/3/2002 7:19:42 AM EDT
I just talked to an old USAF retiree (got out in 1969) nice guy, claimed that military personnel before Reagan took office never had to pay income tax. Is that true? I never heard that before.
Link Posted: 10/3/2002 7:23:23 AM EDT
I'm not sure if the change was Reagan era, but yes, military wages used to be non-taxable. Some of it still is.
Link Posted: 10/3/2002 7:32:41 AM EDT
[Last Edit: 10/3/2002 7:34:11 AM EDT by liberty86]
Originally Posted By GovtThug: I'm not sure if the change was Reagan era, but yes, military wages used to be non-taxable. Some of it still is.
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We always had to pay all tax's unless deployed to a combat zone,('Nam), in the '60's . Is that still the case?? (Edited to add I THINK that's how it worked)
Link Posted: 10/3/2002 7:41:56 AM EDT
Ok, I may be wrong on the non-taxable thing. I'm checking on it. But, military didn't contribute to Social security until around 1957. Currently, all military pay is tax exempt when in a combat zone. Military "pay" is taxable (basic pay, parachutist pay, demolition duty pay, etc.) Military "allowances" are not taxable (basic allowance for housing, family separation allowance) Travel pay is for the most part non-taxable.
Link Posted: 10/3/2002 7:43:42 AM EDT
All I know is, during deployment to certain "danger zones" service members do not have to pay federal taxes. If you are in a critical MOS you try and time reenlistment so that you are in one of these zones when you actualy do reenlist so that any bonuses you might receive don't get the big tax bite taken out of them. I don't know about the other bit before Regan, the military being tax exempt. Sounds urban myth like to me. IPSC_GUY sends
Link Posted: 10/3/2002 7:49:03 AM EDT
Post it in the veterans forum, somebody there HAS to have some memory left......
Link Posted: 10/3/2002 7:54:39 AM EDT
Link Posted: 10/3/2002 8:21:03 AM EDT
Originally Posted By Paul: Pay is not taxable - allowances are (about 30% of my check).
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You've got that backwards.
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