Frequently Asked Questions
Tax Withholding Info
Income taxes, like military inspections, are an inevitable part of life. We want to help you meet your tax responsibilities without adding more work or worry to your life.
First, it's important that you understand that we are not tax experts or advisors. Our job is to provide you with accurate year-end information in the form of W2s or other tax statements you will need to file with federal, state and local tax authorities. We also provide an easy online way to keep your tax withholding information current or retrieve your tax statements via myPay.
Portions of your pay are withheld from each paycheck for federal and state income tax purposes based on your specific situation. Are you married? How many dependents do you have? This information is reported to us when you fill out an IRS W4 form and turn it into your finance office or when you use myPay to update your information online. We also use information from your service, such as when you are serving in a Combat Zone Tax Exemption area, as well as tax withholding requirements from the IRS and your state of legal residence to withhold enough to meet anticipated tax liability.
While we try to do the best we can, the accuracy of tax withholding still rests with you. Each individual is different and it's your responsibility to review your income and other financial information, as well as what that information means when it comes tax time. You can adjust your tax withholdings based on that information to make sure enough is withheld each year, or to make sure we are not withholding too much and depriving you of money you may need to support your family or meet other financial obligations.
We encourage all of our pay customers to meet with their tax advisor, on base tax assistance counselors (usually found through your legal services office), or by visiting the IRS website. State tax information may be found on the websites of your state revenue or tax department.
ALERT: Kentucky, New Mexico, Minnesota and Oklahoma instituted new tax guidelines in 2010 exempting certain military pay from state taxes for legal residents. These states join others exempting all or part of military pay for eligible members. Know your state's rules, and make sure your tax withholding is correct.
ALERT: Arkansas instituted new tax guidelines in 2014 exempting certain military pay from state taxes for legal residents.
ALERT: Colorado passed legislation that exempts certain types of military pay from state taxes for legal residents; though it only applies to specific circumstances.
Once you can more accurately estimate your tax liabilities, you can adjust withholding by completing a new W4 and submitting it to your finance office. Even easier, go online to myPay and update your federal and state withholding information.
Need a corrected W2, having problems accessing your myPay account? Our tax statement page can help.