Military Retiree Tax Prep

Defense Finance
and Accounting Service
Providing payment services of the U.S. Department of Defense

Military retirees: it???s time to get ready for tax season

Military retirees: it's time to get ready for tax season

CLEVELAND (Dec. 2 , 2011) – Tax and annual pay statements for military retirees will be mailed beginning mid-December for those who do not receive documents via the Defense Finance and Accounting Service’s myPay system.

myPay users will have access to these documents by mid-December without waiting for mail delivery delays, and have them available from any computer 24 hours a day, seven days a week.

According to DFAS officials, all military retirees who receive hardcopy IRS 1099-R forms and Retiree Account Statements should receive them by the end of January.

Whether a military retiree uses myPay or relies on mail, each retiree will receive two Retiree Account Statements in December. One dated December 2 will reflect military retired pay as of December 31 and will include the 2012 cost of living adjustment. The second statement dated December 12 will reflect pay effective February 1 and include updated Federal Income Tax Withholding rates from the IRS.

1099-R will show 13 payments in 2011

Retirees will notice a total of 13 payments on their 1099-R tax statements this year. This isn’t a mistake.  The 2011 National Defense Authorization Act required a pay schedule change that resulted in retirees receiving 13 pay checks instead of the normal 12 in the 2011 tax year. This change may increase tax liability for some.

DFAS customer service representatives are not tax experts and cannot provide tax advice.  Retirees are encouraged to speak with a tax advisor, the Internal Revenue Service or a state tax authority to determine if their tax withholding will satisfy their federal and state income taxes when they file 2011 tax returns.

Those retirees who did not change their Federal Income Tax Withholding to compensate for the additional payment should begin saving now for any additional amount they may owe.

For more information about the pay schedule change, retirees can read the DFAS Retired and Annuitant Pay newsletter at Page updated Dec. 2, 2011