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Military Pay and Taxes - paystub looks wrong

Discussion in 'Military Medicine' started by exmissionary, Jul 25, 2011.

  1. Just started school and started getting deposits through the hpsp program. I am looking at the statement on the mypay program and am confused on why I am not being taxed for medicare and social security. I am getting a federal tax of 25% and a state tax.

    (I should not be taxed by state -this is another error- as I am living outside of California. California does not tax military members while out of state. I talked to the franchize tax board about this several times. Either they were not aware of the law and confused by it, or there is also an error in the system for which I will need to have corrected as well.)

    Anyone have any experience on this?
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  3. Mirror Form

    Mirror Form Thyroid Storm
    10+ Year Member

    May 8, 2003
    Likes Received:
    Attending Physician
    I'm not familiar with HPSP, but many forms of military pay are not taxed by medicare and social security (eg special pays).
  4. Wolverines83

    Wolverines83 ASA Member
    7+ Year Member

    Sep 29, 2010
    Likes Received:
    Resident [Any Field]
    Hey get used to the pay being messed up. Unfortunately it tends to happen with the military (I was active duty). Normally what I did was speak to the finance unit at my base, which won't work for you since you don't have a base; however, you should be under some form of a "unit" that controls your pay. Like I said, I'm not HSPS, but I would start by trying to contact your last point of contact with the military and see where he/she can point you so you can contact the finance people directly to resolve the issue.

    They might also be able to help you with the taxes. If nothing else they might be able to stop withholding the tax from your check. But one major point, is your permanent address (aka "home of record") still in California? They might be taxing you based on that. Just something to think about.
  5. MTGas2B

    MTGas2B Cloudy and 50
    Physician Faculty 10+ Year Member

    Sep 22, 2004
    Likes Received:
    Attending Physician
    You may still be liable for California taxes. HPSP is not active duty military time. I was a med student in Washington State (no income tax), but at the time was a Montana resident (income tax with active duty military income exemption). I still had a to pay income tax. For reasons not related to military service, I had to remain a Montana resident while I was in school in Washington.

    After med school I did residency and fellowship in WA, and now I'm stationed in CA. I made sure to get my residency changed to WA when I showed up on active duty.

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