Tax Question

[SeminoleFan3]

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Why does my last LES for 2010 show my YTD entitled and deduct as different from my wages and total taxes withheld on my W-2? I don't think I noticed this last year (and don't have last year's final LES to check against my W-2 any way). We're talking about an $8,000 different between wages and entitlements? I had 2 ATs this year, so I don't know if that's a reason for the difference. In terms of the taxes, the difference between the taxes on my W2 and deductions on my LES is about a grand. I'm just confused. Maybe I'm not reading it right?

 

[haujun]

Why does my last LES for 2010 show my YTD entitled and deduct as different from my wages and total taxes withheld on my W-2? I don't think I noticed this last year (and don't have last year's final LES to check against my W-2 any way). We're talking about an $8,000 different between wages and entitlements? I had 2 ATs this year, so I don't know if that's a reason for the difference. In terms of the taxes, the difference between the taxes on my W2 and deductions on my LES is about a grand. I'm just confused. Maybe I'm not reading it right?

Entitlements include non-taxable items such BAH, BAS.

 

[AFSmiley]

Entitlements include non-taxable items such BAH, BAS.

Speaking of BAH/BAS and taxes- there's a section of turbotax that asks about "nontaxable income" and specifically sites "Military basic quarters and subsistence allowances" and explains that "This amount will not be counted as income on your return. It's only used it to determine your sales tax deduction"

So do I add up by BAH/BAS for 2011 and enter that number?

~Smiley😎

 

[colbgw02]

Speaking of BAH/BAS and taxes- there's a section of turbotax that asks about "nontaxable income" and specifically sites "Military basic quarters and subsistence allowances" and explains that "This amount will not be counted as income on your return. It's only used it to determine your sales tax deduction"

So do I add up by BAH/BAS for 2011 and enter that number?

~Smiley😎

Yes.

 

[NavyFP]

Speaking of BAH/BAS and taxes- there's a section of turbotax that asks about "nontaxable income" and specifically sites "Military basic quarters and subsistence allowances" and explains that "This amount will not be counted as income on your return. It's only used it to determine your sales tax deduction"

So do I add up by BAH/BAS for 2011 and enter that number?

~Smiley😎

DFAS has already done that and it is on your W2.

 

[colbgw02]

DFAS has already done that and it is on your W2.

That's not at all to what he's referring.

If you choose to itemize your deductions, then you can deduct money spent on sales tax. If you've made large purchases, then you can calculate the deduction yourself. Most people opt to take the estimated deduction based on the sales tax rate of your location and your purchasing power. You are correct, of course, that the W2 automatically excludes allowances from taxable income, but since that money contributes to one's purchasing power, it must be accounted for when utilizing the sales tax deduction.

 

[AFSmiley]

Thanks guys....did my taxes this week. Itemized deductions. Didn't do too bad this year as a PGY-1.