Military - Need help with adjusting exemptions

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ryn996
Posts: 14
Joined: Thu Jun 18, 2015 7:27 pm

Military - Need help with adjusting exemptions

Post by ryn996 » Mon Mar 12, 2018 8:17 am

Per my Feb 1-28 Leave and Earning Statement

Entitlements:
Base Pay: 7052.70
BAS: 254.39
BAH: 1956.00
SAVE Pay: 416.68

Deductions:
Fed Taxes: 624.54
FICA-SS: 437.27
FICA-Mecicare: 102.26
SGLI: 29.00
SGLI Fam/Spouse: 6.50
Mid-Month Pay: 4225.66

Allotments:
Tricare Dental: 28.87

Summary:
+Amount Fwd: 0
+Total Entitlements: 9679.75
-Total Deductions: 5425.23
-Total Allotments: 28.87
+Net Amount: 4225.65
-Cr Fwd: 0
+End of Month Pay: 4225.65

On the FED TAXES area it says
Wage Period: 7469.36
Wage YTD: 14938.72
Tax YTD: 1407.22

Situation is Married with two kids (5 and 2). Married filing joint. Spouse does not work.

Going through the IRS exemption calculator I'm not sure what amounts I need to enter. The military LES is confusing to me the way it is laid out. I know that BAS and BAH aren't taxed. When I enter in what I believe to be correct in the calculator it says I should change my exemptions to 18 (currently 3, received a $3,100 tax return for 2017 taxes). It seems like increasing to 18 is too high. With the change in the tax law I know I need to increase my exemptions, but that seems extreme.

Edit: SAVE pay is also not taxed and I expect to receive a $25k bonus in April.
Last edited by ryn996 on Mon Mar 12, 2018 11:29 am, edited 2 times in total.

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BL
Posts: 8457
Joined: Sun Mar 01, 2009 2:28 pm

Re: Military - Need help with adjusting exemptions

Post by BL » Mon Mar 12, 2018 8:54 am

Off the top of my head, exemptions 18 sounds like "don't withhold anything". See what happens on next statement.

You will probably get up to 4,000 child tax credit that would handle 4000 in taxes.

ryn996
Posts: 14
Joined: Thu Jun 18, 2015 7:27 pm

Re: Military - Need help with adjusting exemptions

Post by ryn996 » Mon Mar 12, 2018 9:22 am

BL wrote:
Mon Mar 12, 2018 8:54 am
Off the top of my head, exemptions 18 sounds like "don't withhold anything". See what happens on next statement.

You will probably get up to 4,000 child tax credit that would handle 4000 in taxes.
The calculator said I'd get $400 back with 18 exemptions, but I don't know if I've entered in the numbers correctly...

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grabiner
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Location: Columbia, MD

Re: Military - Need help with adjusting exemptions

Post by grabiner » Tue Mar 13, 2018 9:18 pm

ryn996 wrote:
Mon Mar 12, 2018 8:17 am
Per my Feb 1-28 Leave and Earning Statement

Entitlements:
Base Pay: 7052.70
BAS: 254.39
BAH: 1956.00
SAVE Pay: 416.68

On the FED TAXES area it says
Wage Period: 7469.36
Wage YTD: 14938.72
Tax YTD: 1407.22

Edit: SAVE pay is also not taxed and I expect to receive a $25k bonus in April.
It looks like the SAVE pay is taxable, since 7469.36 is within two cents of the Base Pay plus the SAVE pay.

Your bonus will probably be withheld at a fixed 22%. This is slightly too high, since your salary of $89632 less the $24,000 standard deduction will put you $11,368 below the top of the 12% bracket, leading to $1137 too much withholding. Thus, if you ignore the bonus and claim the appropriate number of withholding allowances, you will get an $1137 refund; the bonus requires you to claim two or three more allowances. On the worksheet, pretend that you have already had $1137 withheld and see how many allowances to claim.
Wiki David Grabiner

ryn996
Posts: 14
Joined: Thu Jun 18, 2015 7:27 pm

Re: Military - Need help with adjusting exemptions

Post by ryn996 » Wed Mar 14, 2018 6:50 pm

grabiner wrote:
Tue Mar 13, 2018 9:18 pm
ryn996 wrote:
Mon Mar 12, 2018 8:17 am
Per my Feb 1-28 Leave and Earning Statement

Entitlements:
Base Pay: 7052.70
BAS: 254.39
BAH: 1956.00
SAVE Pay: 416.68

On the FED TAXES area it says
Wage Period: 7469.36
Wage YTD: 14938.72
Tax YTD: 1407.22

Edit: SAVE pay is also not taxed and I expect to receive a $25k bonus in April.
It looks like the SAVE pay is taxable, since 7469.36 is within two cents of the Base Pay plus the SAVE pay.

Your bonus will probably be withheld at a fixed 22%. This is slightly too high, since your salary of $89632 less the $24,000 standard deduction will put you $11,368 below the top of the 12% bracket, leading to $1137 too much withholding. Thus, if you ignore the bonus and claim the appropriate number of withholding allowances, you will get an $1137 refund; the bonus requires you to claim two or three more allowances. On the worksheet, pretend that you have already had $1137 withheld and see how many allowances to claim.
Looks like you are correct on the SAVE pay. I was confusing it with Special Pay. I redid the calculator and it says with 15 exemptions I should be refunded less than $25. I've adjusted it and it will take effect on April 1st, so I'll see what happens then!

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