The Dreaded “D” word (and I don’t mean debt)

07. May 2013 · Write a comment · Categories: Deployment · Tags:

Military Father and Daughter ReunitedThe dreaded “D” word entered our house and it’s not debt. It’s a deployment. Deployments are part of military life. Much like our peers, we are a family who has only known a time at war. But what made this deployment different is the short-notice orders. (In other words we had 10 days to prepare for my husband to leave for training.) Cue the gasps and dramatic music, please. He was the lucky guy selected to join a unit that has been training for several months and he needed to leave ASAP.

So, if your family receives short-notice orders, here are some suggestions on the essentials items you’ll need:

Essential Pre-deployment Must- Haves

Updated Power of Attorney: Your service member can have a general and/or special power of attorney prepared at the local legal assistance office. It is helpful to either call or visit the legal assistance office to set up an appointment and ask for a list of information you’ll need to bring. Sometimes the legal assistance office will have designate days set aside where they offer a class and meet with clients to execute a power of attorney. Let the office know if you have a short time frame. They may be able to accommodate your schedule or suggest nearby location that can complete the paperwork.

It is important for both parties to understand how the power of attorney works and when it can be used and when it cannot be used. If you anticipate a big purchase during the service member’s deployment, talk to your bank. The bank may have their own special power of attorney that is needed for transactions and may not accept your general or special power of attorney.

Updated Will: Simply said a will is to protect your assets. Be sure you have a copy of an updated will before your service member leaves. Again the legal assistance office can prepare a will for you. Many installations will offer will classes on designated days of the week or for a particular unit that is deploying. However, they are flexible and most will work with your schedule if you have a short time frame.

DD Form 93: Also known as the Record of Emergency Data, DD Form 93 is a form that only the service member can update. The Defense Department will use the contact information on this form to contact the designated Primary Next of Kin (PNOK) if there is an emergency, such as an illness or injury. It also outlines who is eligible for the death gratuity benefit.

Unit Contact Information: It is very important for you to have your service member’s unit contact information. Especially if your service member deploys as an Individual Augmentee (IA), someone who deploys without his or her primary unit, you will need to know how to contact the unit. Generally the unit will have a designated point person to relay family information. Ask for this contact before your service member begins training. If there is not a family person designated, have your service member ask the Command provide information on how families will receive information during the deployment.

What is on your short-list?

Last Minute Tax Filing Tips for Military Families

15. April 2013 · Write a comment · Categories: taxes · Tags: , , ,

Tax dayOh, no. Today’s the day. Have you filed your taxes? Military families, there are several resources to help you file your taxes and depending on your service member’s current duty location, you may be eligible for an extension.

Free tax filing services are available for active duty families through Military OneSource.The program provides free access to a customized version of the basic H&R Block at Home® online tax filing product. This customized product allows for free federal filing and up to three state returns. Military OneSource also provides tax counselors via telephone at 1.800.342.9647. The counselors cannot prepare tax forms, but can help you make an informed decision about your tax situation.

 

Military installations offer Volunteer Income Tax Assistance (VITA) consultants to assist with free tax advice, tax preparation, return filing, and much more. Locate the closest VITA site using the Armed Forces Legal Assistance Services Locator.

If your military member is deployed, you may be eligible for an extension, but you’ll need to file the extension. For quick tips specific to military members, check out the IRS Tax Information for Members of the U.S. Armed Forces. This page contains online videos and short articles which highlight military specific issues such as combat pay, filing deadline extensions for deployed service members, and tax laws that provide special benefits to military families.

Many military families are able to file their tax return online, but if you need to visit the post office be sure to check the hours of operation. Several post offices will have extended hours just for today.

Three Preferences for Military Members to try for Effective Debt Relief

25. March 2013 · 2 comments · Categories: Debt · Tags: , ,

Guest Post by Dan Marshall

There are some effective options available for military people to get debt relief. Various military members get help of Servicemembers Civil Relief Act (SCRA), military relief organizations and Armed Forces Legal Assistance Office to eliminate debts effortlessly. These options are in fact very much viable and less demanding for the military people who are drowning under debts.

Here is an overview of 3 most significant options which may provide debt relief for military members:

The Servicemembers Civil Relief Act or SCRA: This act was signed by the President of United States by the late 2003. The law was a modified form of the Soldiers’ and Sailors’ Civil Relief Act of 1940. After the modification, it included various civil protection laws. This act is designed to assist all the active service-members and individuals who are called to active task in the military. Through this act the military members may enjoy the suspension of some definite civil obligations, so that they may devote the attention absolutely to their duty. Some of the obligations are – mortgage payments, outstanding tax payments and delinquent credit card debt. As per the rules and regulation, the service-members may even get protection against the expulsion due to the nonpayment of rent which is less than $1,200 per month. The interest rates on the credit cards can’t also exceed the mark of 6%. To get advantage of this act, a military member only has to present a certified letter proving his active duty status to the credit companies.

Military relief organizations: There are numerous non-profit organizations which provide grants and various financial help to the families of military members during their financial hardships. Military relief organizations offer various financial helps including the interest-free loans and tuition fees also. Some organizations even offer efficient counseling for an overall financial well being. Most of the grants and interest-free loans are meant for one-time financial crisis like urgent medical expenses, repair work for vehicles, house rent and urgent travel expenses. With the help of these organizations military members may easily solve their financial and debt related problems.

Armed Forces Legal Assistance Office: The Armed Forces Legal Assistance Office deals with various civil and legal matters. Numerous civil matters including wills, family law, disputes for rent and the consumer and debt related issues.The Judge Advocate General Officers will evaluate the case well to provide legal advice to deal properly with pestering debt collectors, various credit card companies and landlords. The whole process of consultation will be kept confidential for utter safety.

Apart from these options every military member must be aware of their SCRA rights. This is actually the most important thing. If applied properly, then the SCRA rules and regulations may solve most of debt troubles effortlessly. The choice of military relief organization must be done carefully. It’s obviously better to choose an efficient organization which can actually help. The military installations even offer efficient support centers for the military people for better financial counseling. A detailed counseling will help you review your financial behavior.

Dan Marshall is a financial writer and enjoys writing articles on the global financial situation, bankruptcy, making money online, the stock market, debt consolidation, and mortgages along with other finance-related topics. He is associated with Oak View Law Group.

 

Starting to Save

08. February 2013 · Write a comment · Categories: Deployment, Savings · Tags: , ,

Money and plant.

Starting to Save

I remember when my husband and I made our first concentrated effort to save. He had just left for his first deployment and I decided I wanted to sign up for the Savings Deposit Program (SDP).  Fresh off a pre-deployment brief I wanted to put my newly found knowledge to good use and take advantage of this great savings opportunity.

A military member can deposit funds into a SDP account once he or she has been deployed for 30 days. The military member must be receiving Hostile Fire Pay. A total of $10,000 may be deposited during each deployment and will earn 10% interest annually. This sounded like an attractive option for us.

Unfortunately, we didn’t set up the account before my husband deployed. I went to our local finance office and learned I would need a special power of attorney to set up the SPD account on my husband’s behalf. (My general power of attorney wouldn’t work.)

I didn’t let this set back derail us from our long term savings plans. Instead, I researched products available through military banks and credit unions and settled on a money market account. Every other week I would take my paper paycheck (yes, I worked for a small employer who did not use direct deposit) and deposit half of my paycheck into our new money market account. I calculated that about half of my paycheck was the additional funds we received while my husband was deployed, which included the family separation allowance, hostile fire pay, and tax benefit.

By the end of the deployment, we had a good savings foundation. But the most important lesson learned was the discipline to save. We actually accounted for savings in our budget. It was no longer an afterthought, but a regular habit.

I’m sharing this information with you, because we are quickly approaching Military Saves week. An annual savings campaign to encourage military families to save. Check out their website and take the saver’s pledge. This is your first step to commit to save.

My husband and I are faithful savers today and I look forward to the messages I receive from the Military Saves campaign to help find new ways to save and to stay on track.

What helped your family start to save?

Tax “Season” Tips

27. January 2013 · Write a comment · Categories: Uncategorized

gift box and glass of champagne over whiteDoes anyone else feel the tax “season” is longer than a traditional holiday season? The commercials for tax prep start before the New Year’s Eve ball drops and continue through the Cadbury egg commercials. Then suddenly it’s April 15.

Try to avoid the last minute stress of filing your taxes by being prepared. It may be helpful to review information specific to military families and your tax situation. The IRS Tax Information for Members of the U.S. Armed Forces  contains online videos and short articles which highlight military specific issues such as combat pay, filing deadline extensions for deployed service members, and tax laws that provide special benefits to service members.

Free tax filing services are available through Military OneSource. The program provides free access to a customized version of the basic H&R Block at Home® online tax filing product. This customized product allows for free federal filing and up to three state returns. Military OneSource also provides tax counselors via telephone at 1.800.342.9647. The counselors cannot prepare tax forms, but can help you make an informed decision about your tax situation.

TurboTax also released a Military Edition that, until February 14, is free for junior enlisted military personnel (ranks E1 to E5).

Military installations offer Volunteer Income Tax Assistance (VITA) consultants to assist with free tax advice, tax preparation, return filing, and much more. Locate the closest VITA site using the Armed Forces Legal Assistance Services Locator.

Do you file your own taxes or enlist the help of a CPA?

This article originally appeared on the National Military Family Association blog, Branching Out.

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