Thomas McAtee posted on October 01, 2011 15:54
October 2011 - Navy
Now Hear This...
The Defense Accounting and Finance Service (DFAS)
announced that pay days for military retirees will be changing
to the first day of the month versus the first "business day."
The change will affect the October 2011 and January 2012
payments which will now be on September 30 and December
30 respectively. Retirees should be aware that the extra payday
in the 2011 tax year could affect their taxes. DFAS recommends
that retirees 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. For tax year 2012 and
beyond, retirees will receive their normal 12 payments.
This change affects regular retired pay, Concurrent
Retirement and Disability Pay and Combat Related Special
Compensation. The new rule also applies to retiree allotments,
garnishments and court-ordered former spouse and child
support payments. The new rule doesn't affect annuity
(Survivor Benefit Plan) payment dates. As previously noted,
the 3 October 2011 payment will be issued on 30 September
2011 and the payment scheduled for 3 January
2012 will be issued on 30 December 2011. For
the calendar year 2011, this means military
retirees will receive 13 rather than the normal
12 payments.
If retirees need to make changes to their
federal or state tax withholding, the quickest
and most secure way to do so is through myPay.
Available 24 hours a day, seven days a week,
myPay enables eligible users around the world to make routine
changes to their pay information, including tax withholding,
that become effective within days. Customers who cannot
access myPay can change federal withholding amounts by
completing a new IRS Form W-4 or W-4P, or change state
withholding amounts using a DD 2866. It may take up to thirty
(30) days for changes to be made when mailing in a paper
form. These forms can be found on the DFAS Web site and
should be mailed or faxed to the below address once completed:
Defense Finance and Accounting Service
U. S. Military Retired Pay
P. O. Box 7130
London, Kentucky 40742-7130
Fax: (800) 469-6559