The Tax Questions Blog

Archive for July, 2010

Question: PCS-ing to Europe questions?

My husband is in OSUT and they put up lists of the bases everyone is going to (in the states). His said Europe. All of his DS have been telling him it will probably be Germany because they need more people on base.

I have been doing a lot of research about CONUS moves but not OCONUS...

Any idea what it will be like?
Can we go with him directly after OSUT?
Do we have to live on base or can we choose to live off base?
We have pets, two cats, will we be able to take them?
I heard that his income is not taxable is that right? -How about his bonus since it wont be issued until he reaches his first station.
Is it hard for a spouse to get a job over there- I don't speak any languages except English, but I've been told this isn't a problem.
Is it going to be an issue?
HELP!

Anyone who has been stationed in Germany or anywhere in Europe I'd love to hear from you. I'm just more than a little out of my league here. I'm excited, just don't know what to expect.

Answer: My girls and I loved Germany. Advice:

Don't just stay on base, get out and travel. You will hate Germany if you don't go somewhere or travel. Take advantage of where you are at. Buy the book "Never a Dull Moment". Awesome book, used it ALOT white I was there. http://www.awag.us/book.htm

Try out Ryan Air if you do any flying to other countries while there: http://www.ryanair.com/site/EN/ They offer extremely cheap air fare.

Learn and take the train system. Europe has a great rail system.

http://www.gettingaroundgermany.info/bahn.htm

http://goeurope.about.com/cs/germany/l/bl_germany_rail.htm

Make sure you have your American Driver Lic before going overseas so that you can get your German One. They have a practice test you can check out online:

http://rmv.hqusareur.army.mil/drivrman/ss190-34.htm

This site lists things for employment depending on which base going to: http://www.milspouse.org/Base/Country/german . I have never seen an American born spouse work offbase before but I have heard of them. All of my friends that worked in Germany worked on base.

Other info that you might like:
www.oconus.com/Main/germany.asp

Most likely he might go ahead of you and sign in and get on the housing list. You might have to wait until housing becomes avaliable before you can fly over there. So make sure to get started on getting your passport. The military will give you a "no-fee" passport that you can use while you are over there. We used this passport the whole time to do all of our traveling. We did not have to buy a different passport. Hubby will be able to use his orders, but I would recommend him also getting the "no-fee" passport. I have seen a few families however go with their soldier and stay in a hotel for a long period of time before housing becomes available but let me remind you, it will be expensive (the army won't cover all of it) and the rooms are extremely small.

You can choose 3 options, depending on the base you go to:
1. living on base
2. Living on the economy
3. living off base but in government leased housing.

You can take your pets with you. Only 2 of them but you must pay the cost to ship them there and back. And there are other rules and regulations. This site lists the conditions and remember they need a checkup within 30 days of being shipped and their is a no fly time period during the summer months: http://www.wiesbaden.army.mil/sites/newcomers/pets.asp
-http://www.happytailstravel.com/military.php

His income is only non-taxable if he is deployed to a war zone. Same applies to bonus.

If you need any more help, just ask.

Uganda warned it was at risk of terrorist attack

News round-up: South Africa warned Uganda of threat from Somali militants months before Kampala bomb attack; confusion over new east African tax laws; oil pipeline in doubt South Africa had warned Uganda of the threat posed by Somali militants, which culminated in the death of 76 people on Sunday evening, it has emerged. Ugandan intelligence services were alerted last October to the presence of ...

MeltDown #694 EMERGENCY ECONOMIC STABILIZATION

Question: Approximately how much will my credit score raise?

Approximately how much can I expect my credit score to raise once I satisfy my IRS tax lien (it will be paid in full within the next 30 days). I know the lien will not be removed from my report, but instead of the current "not released" status, it will show as "released"

Answer: actually it will not improve your score at all..and the fact that you had the lein will be on your credit for 10 years...it will just show that it has been satisfied.

Beverly Todd Talks New Film Roles, Gives Props to New Director on the Rise

*Veteran actress Beverly Todd has been working in film and theatrical productions for over 40 years, having learned from none other than Sidney Poitier himself. Her list of achievements are too numerous to list here, but some of our readership may remember her for her role in the now classic offering “Roots,” “Lean on Me,” [...]

I have a federal tax lien and Im selling my house

Question: Help me Understand this: Taxable benefits. Subtract line 21 from line 15. Also, include this in 1040 Form #7?

The below is from Form 2441.

Taxable benefits. Subtract line 21 from line 15. Also, include this amount on Form 1040, line 7. In the space to the left of line 7, enter "DCB.”

I have $5000 on Line 15. I have $5000 on line 21. If I subtract it is $0. If I add $0 to my wages on my 1040, then my gross income will remain same....

However, the Tax Software adds $5000 to my Form 1040 line 7. I assume it is supposed to add $0.

Can you please help me understand this?

Answer: You haven't provided enough information.

Go to the H&R Block tax estimator, fill out your info, and get a pretty good estimate of your taxes and refund.

http://www.hrblock.com/taxes/tax_calculators/index.html

IRS offers six summer job tips for students

School's out and many students now have a summer job. Some students may not realize they have to pay taxes on their summer income. Here are the six things the IRS wants everyone to know about income earned while working a summer job.

1179-UCC #27-Winston Shrout audio-1099OID process: Overturn The Money Changers

Question: Why shouldn't employer-provided health insurance be taxed?

Those who buy their own insurance are taxed on the income they use to pay their premiums, aren't they? Why then shouldn't health insurance be considered taxable income?

After all, waiters are expected to pay taxes on their tips, performance-based bonuses are taxable, even unemployment checks are subject to tax...I don't get it.

Answer: There really is no reason why it shouldn't be taxed as income. But whenever this is mentioned, people are outraged at having to pay more taxes, so the idea is quietly dropped.

You could also make the case that health insurance is a basic need, so it should remain tax free, just as we don't charge sales tax on food or on medical care itself.

BNY Mellon Reports Second Quarter Continuing EPS of $0.55 or $668 Million Vs. $0.23 or $267 Million in the Second ...

The Bank of New York Mellon Corporation today reported second quarter income from continuing operations applicable to common shareholders of $668 million, or $0.55 per common share, compared with $267 million, or $0.23 per common share, in the second quarter of 2009 and $601 million, or $0.49 per common share, in the first quarter of 2010.

List Control Bonus - Frank Kern

Question: Is it a good idea to hold ETFs in a taxable investment account?

If not, what securities are the best for this type of account (not IRA)?
I consider buying index ETFs. Or is it better to buy index mutual funds for this kind of acount?

Answer: Yes.
ETFs are very tax efficient, and provide a low cost way to build a diversified portfolio.

Because ETFs are traded like stocks, there is a commission every time you buy or sell. For this reason, if you are adding money monthly or quarterly, a mutual fund may be a better choice.

Zacks Analyst Blog Highlights: Goldman Sachs, Royal Bank of Scotland, Fannie Mae, General Electric, First Horizon ...

CHICAGO----Zacks.com Analyst Blog features: The Goldman Sachs Group Inc. , Royal Bank of Scotland Group plc , Fannie Mae , General Electric Company , First Horizon National Corporation and Commerce Bancshares Inc. .

Federal Budget: Jonathan Chevreau