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Old 02-15-2006, 08:32 AM
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Stupid Government Taxes!

Well get this. I am an engineer for the Department of Defense. I do logistics and engineering for the Navy (I'm a civilian). My wife is a Naval Nurse (officer). We are DINKs (Dual Income, No Kids). We both claim, for tax purposes, married with 1 exemption each. Because of the damn state taxes I pay in Maryland, my wife brings in roughly $1000 more, PER PAYCHECK, than I do. Well, she gets paid twice a month, and for three months out of the year, I get paid three times a month. The other times I get paid twice a month. So I guess the difference is actually less than $1000 per paycheck. Nevermind the fact that I get paid $25,000 more per year than her gross.

The difference is because she claims her state of "residency" is Florida, she doesn't pay state taxes in Florida or Maryland. Man, sometimes it pays to be in the military!

Stupid state and government taxes!

::Rant Off::
Old 02-15-2006, 09:02 AM
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I don't think that is mathmatically possible. MD state tax is less than 5% of your income. Don't think that is the difference if you make 25k more a year. You are probably in a higher tax bracket but that still would not let her bring more in.

and how do you get paid 3 times a month 3 times during the year. Do you get paid every 10 days or something? Most get paid every 2 weeks which gives you 2 times a year where you are paid 3 times in a month.

Last edited by 95gt; 02-15-2006 at 09:06 AM.
Old 02-15-2006, 09:09 AM
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And how much does your wife make as a Navy nurse? 100k or something. If she is bringing in 1000 dollars a paycheck MORE than you than she is making a shitload of money. that is 2k a month AFTER taxes right there or 24k a year AFTER taxes. And that is just the amount more than you.

Sorry man this all sounds like
Old 02-15-2006, 10:06 AM
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Dont worry. The residents of FL are picking up the tab with a 7% sales tax.
Old 02-15-2006, 11:37 AM
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Originally Posted by SakiGT
Dont worry. The residents of FL are picking up the tab with a 7% sales tax.
And higher property taxes courtesy of the housing bubble
Old 02-15-2006, 11:45 AM
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Originally Posted by SakiGT
Dont worry. The residents of FL are picking up the tab with a 7% sales tax.

8.625% in NY
Old 02-15-2006, 11:51 AM
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Blame (and thank) the tourists.
Old 02-15-2006, 12:16 PM
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Originally Posted by 95gt
I don't think that is mathmatically possible. MD state tax is less than 5% of your income. Don't think that is the difference if you make 25k more a year. You are probably in a higher tax bracket but that still would not let her bring more in.

and how do you get paid 3 times a month 3 times during the year. Do you get paid every 10 days or something? Most get paid every 2 weeks which gives you 2 times a year where you are paid 3 times in a month.
OK, here is the breakdown:

In 2006, I will get paid three times a month in March, June, September, and December. This is roughly every quarter. I get paid every two weeks on a Friday, and those months have three Fridays in them.

I guess I should add that I contribute to TSP, FERS, federal taxes, state taxes, etc. I make $2,288.80 per paycheck, and after everything comes out, I take home $1,549.56. That is roughly 67.7% of the gross that I take home.

I should also add that my wife, because we live in the DC area, takes home $3,170.10 in base pay, $187.49 food allowance, and $2,047.00 in housing allowance per month. So all in all, she takes home $5,404.59 a month. I take in about $5340.53 a month, on average.

So I guess I was calculating all this stuff using her BASE PAY, not overall total monthly pay.

I guess that's how she takes home more than I do. She only pays federal taxes, Social Security, Medicare, Life Insurance, and Dental Insurance for me.

I guess I gots myself a sugar momma!
Old 02-15-2006, 01:56 PM
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Originally Posted by gatrhumpy
OK, here is the breakdown:

In 2006, I will get paid three times a month in March, June, September, and December. This is roughly every quarter. I get paid every two weeks on a Friday, and those months have three Fridays in them.

I guess I should add that I contribute to TSP, FERS, federal taxes, state taxes, etc. I make $2,288.80 per paycheck, and after everything comes out, I take home $1,549.56. That is roughly 67.7% of the gross that I take home.

I should also add that my wife, because we live in the DC area, takes home $3,170.10 in base pay, $187.49 food allowance, and $2,047.00 in housing allowance per month. So all in all, she takes home $5,404.59 a month. I take in about $5340.53 a month, on average.

So I guess I was calculating all this stuff using her BASE PAY, not overall total monthly pay.

I guess that's how she takes home more than I do. She only pays federal taxes, Social Security, Medicare, Life Insurance, and Dental Insurance for me.

I guess I gots myself a sugar momma!

Wow you really do give a lot of info on a public forum.

1st another Govt employee here. I also get paid every 2 weeks. And as everyone knows there are 26 weeks in a year. 2 times a month * 12 months = 24 paychecks. That leaves 2 left to come during the year. So 2 times a year you will get paid 3 times in a month. Those times are June and Dec in 2006. By the way every month has 3 fridays in them

Man I didn't realize the military got that kind of housing pay and other benefits if they were just working in the US. That is crazy, man less bitching about low pay from them So now it makes a lot more sense. She probably isn't taxed on the housing allowance or other additional stuff.

Gots to get me one of those ladies.
Old 02-15-2006, 02:10 PM
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Originally Posted by 95gt
Wow you really do give a lot of info on a public forum.

1st another Govt employee here. I also get paid every 2 weeks. And as everyone knows there are 26 weeks in a year. 2 times a month * 12 months = 24 paychecks. That leaves 2 left to come during the year. So 2 times a year you will get paid 3 times in a month. Those times are June and Dec in 2006. By the way every month has 3 fridays in them

Man I didn't realize the military got that kind of housing pay and other benefits if they were just working in the US. That is crazy, man less bitching about low pay from them So now it makes a lot more sense. She probably isn't taxed on the housing allowance or other additional stuff.

Gots to get me one of those ladies.
Yeah you're right. I knew that, but I didn't think about it. Go figure from an engineer

I work down at Pax River, where do you work?

Also, no, she isn't taxed on the extra money she gets paid for BAS and BAH. I love the free health care too!
Old 02-15-2006, 02:18 PM
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Originally Posted by pebecl97
8.625% in NY
Tell me about... ever since I moved from Jersy to NY, my each paycheck gets slapped with NY City Tax as well, which is another 4%, I think.

My bonus check for last year, after 401(k) and taxes deduction, ended up less than 50% of the actual amount.

And, seeing the NYC MTA (Metro Transit Authority) doing such a lousy job makes me wonder where my contribution city had gone to... well, that is another thread.
Old 02-15-2006, 02:20 PM
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Originally Posted by gatrhumpy
OK, here is the breakdown:

In 2006, I will get paid three times a month in March, June, September, and December. This is roughly every quarter. I get paid every two weeks on a Friday, and those months have three Fridays in them.

I guess I should add that I contribute to TSP, FERS, federal taxes, state taxes, etc. I make $2,288.80 per paycheck, and after everything comes out, I take home $1,549.56. That is roughly 67.7% of the gross that I take home.

I should also add that my wife, because we live in the DC area, takes home $3,170.10 in base pay, $187.49 food allowance, and $2,047.00 in housing allowance per month. So all in all, she takes home $5,404.59 a month. I take in about $5340.53 a month, on average.

So I guess I was calculating all this stuff using her BASE PAY, not overall total monthly pay.

I guess that's how she takes home more than I do. She only pays federal taxes, Social Security, Medicare, Life Insurance, and Dental Insurance for me.

I guess I gots myself a sugar momma!

dang, housing allowance, damn, I should work for the goverment....
Old 02-15-2006, 02:23 PM
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Originally Posted by uu
dang, housing allowance, damn, I should work for the goverment....

military, not the gov't. We don't get those kind of perks.
Old 02-15-2006, 08:33 PM
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Originally Posted by gatrhumpy
OK, here is the breakdown:

In 2006, I will get paid three times a month in March, June, September, and December. This is roughly every quarter. I get paid every two weeks on a Friday, and those months have three Fridays in them.

I guess I should add that I contribute to TSP, FERS, federal taxes, state taxes, etc. I make $2,288.80 per paycheck, and after everything comes out, I take home $1,549.56. That is roughly 67.7% of the gross that I take home.

I should also add that my wife, because we live in the DC area, takes home $3,170.10 in base pay, $187.49 food allowance, and $2,047.00 in housing allowance per month. So all in all, she takes home $5,404.59 a month. I take in about $5340.53 a month, on average.

So I guess I was calculating all this stuff using her BASE PAY, not overall total monthly pay.

I guess that's how she takes home more than I do. She only pays federal taxes, Social Security, Medicare, Life Insurance, and Dental Insurance for me.

I guess I gots myself a sugar momma!

I was wondering where does the $600+ billion government debt was coming from. Housing allowance, nice chunk.
Old 02-15-2006, 08:56 PM
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I'm the same deal man. Half of my take home pay is in allowances like housing. You have to look at it like this though:

-If she lived in a barracks, she wouldn't be getting that housing allowance.

-Housing allowance is based on your local, so because you live near the beltway, you get substantially more than someone stationed is say, Mississippi.

-Housing allowance is based on rank. She is making a butt ton more than I am because she is an officer and I’m a “dirty blue shirt” enlisted type.

It’s kind of a double edged sword though, because once you separate from the military, you have to take into account how much more in taxes you will be paying out to the gov’t and adjust your salary requirement accordingly.


Gatrhumpy: Do you work for NAVSEA at the Navy Yard? I might be working at PMS-392 in a few months here. I’m guessing by that pay you’re a GS 13 or 14 huh? We need to talk…I need some ins

95gt: Even though it was sarcastic, I completely agree with you that people in the military need to stop bitching about their pay. We get paid very well in my opinion. I’m making over 60K a year before taxes, been in only 7 years, and I don’t have my BS yet. How many jobs can you say that for?
Old 02-15-2006, 08:57 PM
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Originally Posted by zamo
I was wondering where does the $600+ billion government debt was coming from. Housing allowance, nice chunk.
Uh, no.
Old 02-16-2006, 06:21 AM
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Originally Posted by SSN_FT1(SS/DV)
I'm the same deal man. Half of my take home pay is in allowances like housing. You have to look at it like this though:

-If she lived in a barracks, she wouldn't be getting that housing allowance.

-Housing allowance is based on your local, so because you live near the beltway, you get substantially more than someone stationed is say, Mississippi.

-Housing allowance is based on rank. She is making a butt ton more than I am because she is an officer and I’m a “dirty blue shirt” enlisted type.

It’s kind of a double edged sword though, because once you separate from the military, you have to take into account how much more in taxes you will be paying out to the gov’t and adjust your salary requirement accordingly.


Gatrhumpy: Do you work for NAVSEA at the Navy Yard? I might be working at PMS-392 in a few months here. I’m guessing by that pay you’re a GS 13 or 14 huh? We need to talk…I need some ins

95gt: Even though it was sarcastic, I completely agree with you that people in the military need to stop bitching about their pay. We get paid very well in my opinion. I’m making over 60K a year before taxes, been in only 7 years, and I don’t have my BS yet. How many jobs can you say that for?
First of all, thank you for being in the military and serving this great country of ours. Even though my wife is an officer, I believe it's the enlisted that run the Navy. They get the planes ready to fly and the ships ready to sail.

To answer your question. No, I don't work for NAVSEA. I work on the aviation side of the house at NAVAIR, specifically Naval Air Warfare Center, Aircraft Division (NAWCAD). I am in the intern program, and was recruited for it right out of engineering school at the University of Florida. The intern program, which I HIGHLY suggest you apply to (actually, might be hard if you don't have a B.S.). Just google NAVSEA or NAVAIR intern program.

http://hro.navair.navy.mil/staffing/.../PAXPR0018.htm
http://jobs.navair.navy.mil/index.cf...ion=apply.main

I started the intern program as a high GS-7, and now I'm four weeks away from becoming a GS-12 in acquisition logistics or engineering. Where else can you do from the equivalent of an Ensign to the equivalent of a LCDR in two-and-a-half years?
Old 02-16-2006, 11:50 AM
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Originally Posted by pebecl97
8.625% in NY


8.75% in my county (San Francisco Bay Area)

...and I agree that state taxes suck, look where I live
Old 02-16-2006, 11:56 AM
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u guys bitch for < 10 % sales tax?

In Peru I used to pay 19%
Old 02-16-2006, 12:37 PM
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Wait... your wife lives with you in Maryland, but she is claiming residency in Florida? How is this being accomplished (legally)?


http://individuals.marylandtaxes.com...tax/status.asp
Residency Status

Resident
If you were domiciled in Maryland on the last day of the taxable year, or you maintained a place of abode (a place to live) in Maryland, and were physically present in Maryland for more than six months of the tax year, then you are a legal resident.

Nonresident
A nonresident is any individual who is not a legal resident of Maryland.

Part-year Residents
If you either established or abandoned Maryland residency during the calendar year, you are considered a part-year resident.

Last edited by EdgarFanCLS; 02-16-2006 at 12:39 PM.
Old 02-16-2006, 12:55 PM
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^^
I don't understand how your wife is legally claiming Florida residency, unless she actually lives down there for more than half of a year. According to the Maryland tax booklet, all military personel are required to file a Maryland resident return if they meet residency requirements and must report ALL sources of income if it wasn't earned overseas. If money was earned overseas, up to $15k can be subtracted from that amount earned overseas.
http://forms.marylandtaxes.com/curre...sidentbook.pdf

So is there some other circumstance, or is she ripping off the state of Maryland?
Old 02-16-2006, 02:08 PM
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Originally Posted by EdgarFanCLS
^^
I don't understand how your wife is legally claiming Florida residency, unless she actually lives down there for more than half of a year. According to the Maryland tax booklet, all military personel are required to file a Maryland resident return if they meet residency requirements and must report ALL sources of income if it wasn't earned overseas. If money was earned overseas, up to $15k can be subtracted from that amount earned overseas.
http://forms.marylandtaxes.com/curre...sidentbook.pdf

So is there some other circumstance, or is she ripping off the state of Maryland?
No because according to the military her legal state of residence is Florida, not Maryland. Florida does not have any income taxes, so she doesn't pay them.

We are "married, filed jointly" according to Maryland state tax laws. So in other words, I claim her income even if she doesn't pay state taxes.
Old 02-16-2006, 04:12 PM
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Originally Posted by gatrhumpy
No because according to the military her legal state of residence is Florida, not Maryland. Florida does not have any income taxes, so she doesn't pay them.

We are "married, filed jointly" according to Maryland state tax laws. So in other words, I claim her income even if she doesn't pay state taxes.
I understand what you are saying - she is telling the military that her resident state is Florida, which doesn't have an income tax, therefore they are not withholding any state income tax.

But if she meets the legal residency requirements for Maryland (posted above), she is legally considered a resident of Maryland and is required to pay state income tax. Maryland does not make exceptions for members of the military if they meet those residency stipulations.

As with employers though (in her case the military), what they "think" an employee's state of residence is can be very different than their legal state of residence. It's not the responsibility of an employer to verify this, it is the job of the individual to ensure that they are paying the correct amount of taxes.

Are there any CPA's on board? THey can probably give you a definitive explanation here.

Last edited by EdgarFanCLS; 02-16-2006 at 04:17 PM.
Old 02-16-2006, 05:48 PM
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Originally Posted by EdgarFanCLS
I understand what you are saying - she is telling the military that her resident state is Florida, which doesn't have an income tax, therefore they are not withholding any state income tax.

But if she meets the legal residency requirements for Maryland (posted above), she is legally considered a resident of Maryland and is required to pay state income tax. Maryland does not make exceptions for members of the military if they meet those residency stipulations.

As with employers though (in her case the military), what they "think" an employee's state of residence is can be very different than their legal state of residence. It's not the responsibility of an employer to verify this, it is the job of the individual to ensure that they are paying the correct amount of taxes.

Are there any CPA's on board? THey can probably give you a definitive explanation here.
According to the booklet, since we are married and both work, we have to file a Maryland return, which is what I said I did in my previous post. I claim BOTH of our income. Turns out I didn't have to do that because if I were to file 'Married, Filing Separately" on the Maryland return my wife does NOT need to file a Maryland return.
Old 02-16-2006, 06:04 PM
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Originally Posted by gatrhumpy
According to the booklet, since we are married and both work, we have to file a Maryland return, which is what I said I did in my previous post. I claim BOTH of our income. Turns out I didn't have to do that because if I were to file 'Married, Filing Separately" on the Maryland return my wife does NOT need to file a Maryland return.


And it doesn't matter if you file jointly or seperately, it doesn't change the fact that she is considered a resident of the state of Maryland if she meets the residency stipulations I posted.

From what it sounds like you are saying, you are declaring her income on your joint return, but declaring her a resident of Florida (thus saying she owes no tax to Maryland on her income). But if she is by legal definition a resident of Maryland she owes state income tax. Understand?

Is she or is she not a resident of Maryland based on what was posted above? It's a pretty simple question. If she is, she owes Maryland state income tax, REGARDLESS of where she is "claiming" she is a resident.

Look, I'm really not meaning to be an ass about this, but this can be pretty serious business if the state found out you owed taxes. It's better to catch these things early, before they come after you 10 years later for back taxes and penalties.

Last edited by EdgarFanCLS; 02-16-2006 at 06:08 PM.
Old 02-16-2006, 06:26 PM
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Seriously, I'm just trying to help you out...no offense meant. If you ever got audited by the state, and they determined that your wife is actually a legal resident of Maryland, they could potentially come after you for a lot of money in both taxes and penalties.
Old 02-16-2006, 08:32 PM
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Originally Posted by EdgarFanCLS
Seriously, I'm just trying to help you out...no offense meant. If you ever got audited by the state, and they determined that your wife is actually a legal resident of Maryland, they could potentially come after you for a lot of money in both taxes and penalties.

His wife is active in our military, so even though she lives in Maryland, her home is still Florida, so she pays (or doesn't pay) FL taxes, not MD.
Old 02-17-2006, 09:13 AM
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Originally Posted by elliot
His wife is active in our military, so even though she lives in Maryland, her home is still Florida, so she pays (or doesn't pay) FL taxes, not MD.



Military is an EXCEPTION to the rules

What If I Am in the Military and My Spouse Is Not in the Military?

Military personnel designate their Home of Record as the state where they enlisted. Generally, military personnel are considered residents of their military homes of record. Federal law prohibits other states from taxing the wages of non-resident military members stationed in their state.

^^^^ from turbo tax site

http://www.turbotax.com/articles/FAQ....html#military
Old 02-21-2006, 04:29 AM
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Interesting..

I'll refrain from spilling the details in my case, but I can assure you.. living in the right state has its benefits. And that state is not Oregon.
Old 02-21-2006, 06:39 AM
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Originally Posted by 95gt


Military is an EXCEPTION to the rules

What If I Am in the Military and My Spouse Is Not in the Military?

Military personnel designate their Home of Record as the state where they enlisted. Generally, military personnel are considered residents of their military homes of record. Federal law prohibits other states from taxing the wages of non-resident military members stationed in their state.

^^^^ from turbo tax site

http://www.turbotax.com/articles/FAQ....html#military

Interesting indeed. I don't know what the final answer will be, but it's like she still is paying taxes in Maryland. This is because in Maryland, we are Married Filing Jointly. So our JOINT income will be taxed. If I were to file Married Filing Separately, then I'm sure the taxes would be more. So it doesn't matter if we each file separately or jointly, since we are married we still have to claim that income. I think I'm screwed either way.

If I file "Married Filing Jointly" our income that we claim will me mine plus hers. Since I was the only one paying state taxes, we will most likely have to pay state taxes. From the state's perspective, then I made $90,000+ in 2005.

If I file "Married Filing Separately" then I will only have to pay taxes on MY income, but the taxes will be higher than the scenario above.

I'm screwed either way it seems.
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