HPSP tax information?

[WoWdoc]

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Hey guys,
I'm on the HPSP scholarship, attending an OOS school. I still haven't updated my drivers license or anything, but I was wondering if I need to pay income taxes for my HPSP stipend to the state where I go to school or to my "home state" for 2011. Does anybody know or have experience dealing with this issue?

 

[NavyFP]

Hey guys,
I'm on the HPSP scholarship, attending an OOS school. I still haven't updated my drivers license or anything, but I was wondering if I need to pay income taxes for my HPSP stipend to the state where I go to school or to my "home state" for 2011. Does anybody know or have experience dealing with this issue?

If you are not considered a state resident by your school, you should be OK just filing with your home state. Not a tax guy, but that is my opinion.

 

[CorpsmanToMO]

Where ever you signed your contract is your permanent home of residence for all your military pay. You can find that information on you DD 214. This will never change during your military career.

 

[Slevin]

I thought you could change your home of record while in the military.

 

[Cooperd0g]

I thought you could change your home of record while in the military.

You can. I think only one time though.

 

[MTGas2B]

Where you signed up for HPSP is your home of record. When you separate the most expensive move they'll pay for is from your last duty station to your home of record. With a few exceptions you can't change your home of record.

Your residence you can change while you're on active duty. Technically you have to show some intention to change but in practice you can walk in and change to anywhere.

As far as HPSP depends on the state's laws. Many states don't require full time students to become residents. I would recommend that you find a way for you and your spouse to become residents of a non income tax (or at least non income tax for active duty and spouses) before you enter active duty. Under the new service member's relief act a non military spouse can keep residency in one place when they move with the military spouse. However it has to be the same place as the active duty service member and they actually have to have established residency there prior to the active duty move.

 

[CorpsmanToMO]

"Home of Record" DD214 can only be changed if there is a break in service of more than one day, or to correct an error.

The secretary of a military department, acting through a board for correction of military records, has authority to change any military record when necessary to correct an error or remove an injustice. A correction board may consider applications for correction of a military record, including a review of a discharge issued by courts martial.
The veteran, survivor or legal representative generally must file a request for correction within three years after discovery of an alleged error or injustice. The board may excuse failure to file within the prescribed time, however, if it finds it would be in the interest of justice to do so. It is an applicant's responsibility to show why the filing of the application was delayed and why it would be in the interest of justice for the board to consider it despite the delay.
To justify any correction, it is necessary to show to the satisfaction of the board that the alleged entry or omission in the records was in error or unjust. Applications should include all available evidence, such as signed statements of witnesses or a brief of arguments supporting the requested correction. Application is made with DD Form 149, available at VA offices, from veterans organizations or from the Internet (http://www.dtic.mil/whs/directives/infomgt/forms/formsprogram.htm).

This is nearly impossible to do unless you get out and sign a new contract

 

[Slevin]

Guess that means I'm stuck paying NYS taxes which are among the highest in the nation. Just great

 

[logankenley]

Guess that means I'm stuck paying NYS taxes which are among the highest in the nation. Just great

no just pay taxes in the state where you are attending school (unless you can think of some reason why you would want to pay higher taxes lol). I live in cali and definately will not be paying cali taxes when I go to school

 

[Slevin]

I start residency this summer but my parents home, where I enlisted in the HPSP program 4 years ago is in NY. What I'm saying is that now that I'm going on active duty, I won't have a chance to change my home of record so I can move it to someplace where I'm paying less state taxes. Cause if I was able to change it to washington then I'd save about 4-5K a year in taxes

 

[USArmyHPSP]

I start residency this summer but my parents home, where I enlisted in the HPSP program 4 years ago is in NY. What I'm saying is that now that I'm going on active duty, I won't have a chance to change my home of record so I can move it to someplace where I'm paying less state taxes. Cause if I was able to change it to washington then I'd save about 4-5K a year in taxes

Once you report to your internship, as part of the inprocessing fill out a new W-4 and a DD Form 2058 state of legal residence certificate and bing! You're now paying taxes for where you live.