By Nick SimeoneAmerican Forces Press Service WASHINGTON -- Since it can directly affect force readiness, the financial health of service members and their families is a high priority for the Defense Department, and a senior DOD official emphasized that January is a great time for military families to take stock of their financial situation. As part of a Department-wide effort to encourage military families to avoid debt by creating a workable spending plan, Barbara Thompson, director of the Pentagon’s office of Family Policy/Children and Youth outlined steps families can take and the …

The following is a report from First Command Financial Services. FORT WORTH, Texas – Again this summer the economy is impacting the rest and relaxation plans of military families, with nearly half of active-duty homes cutting back on vacation spending. The First Command Financial Behaviors Index® reveals that 45 percent of middle-class military families (senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000)  are applying one or more money-saving tactics to their summer getaway plans. Popular cost-cutting approaches include: Staying …

For this entry, I thought I'd piggyback a bit on last month's midyear tax withholding checkup theme. I've read several personal finance columns in the last few weeks and one the considerations they offer to their readers (due to the uncertainty of where taxes and tax rates may be in the future) is an IRA rollover from a traditional to a Roth IRA. Doing such would have you generally paying your taxes (on the distribution) now instead of later as distributions from a Roth are tax free. Most financial advisors will suggest that you NOT use the funds from the IRA to pay any taxes owed but will …

First Command Financial Services FORT WORTH, Texas – Current defense downsizing efforts are prompting new financial fears in middle-class military households, with the majority of families worrying that they will be forced to leave active-duty service before qualifying for lifetime retirement benefits. Recent survey findings from the First Command Financial Behaviors Index® reveal that 67 percent of middle-class military families (senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000) are concerned about the increased possibility of …

What is the minimum down payment I can make on a home? There is no standard minimum down payment required for buying a home. While many first-time homebuyers are under the impression that they must put down up to 20%, that is not true. Down payments depend, on the specific program you are using to buy your home but generally lenders require a minimum of 3.5% (down based on the value of the home. Lenders will work with you to specify a minimum down payment that works for your situation. What are closing costs and how much do they cost? Closing costs include a variety of fees associated with …

Do you ever wonder if certain things are deductible on your tax return? I have a friend who often does and asks, although it's mostly in jest. For example, a few of us will be swapping stories and if the cost of ________________ is offered and/or involved in a story, then he will ask if ________________ is deductible. Surprisingly enough, the answer is mostly "no," but there are a lot of miscellaneous deductions that you can deduct and the IRS offers an excellent resource in Publication 529, Miscellaneous Deductions, to answer some legitimate miscellaneous tax deduction questions. First, you …

First Command Financial Services FORT WORTH, Texas – Servicemembers who work with a financial planner cite financial know-how and moral fiber as the top qualities to look for when picking a planner, according to the First Command Financial Behaviors Index®. Recent survey findings from the First Command Financial Behaviors Index® reveal that roughly three quarters of middle-class military families (senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000) picked “trustworthy,” “knowledgeable” and “honest” as the most important attributes they…

Raphael Tulino is a blogger for Camp Pendleton Patch. Do you have something to say? Click here to start your own blog!   I had this question posed to me recently so thought I'd offer up more on it here. If you use your car in your job or business and you use it only for that purpose, you may generally deduct its entire cost of operation (subject to limits). However, if you use the car for both business and personal purposes, you may deduct only the cost of its business use. You can generally figure the amount of your deductible car expense using one of two methods: the standard mileage rate …

By Dominique Molina Entrepreneur Dominique Molina, President of the American Institute of Certified Tax Coaches, shares her tips to staying organized for this year's busy tax season... Each year around this time, many business owners get that dreaded knot in their stomach when they realize that it’s time to file their taxes.   At CertifiedTaxCoach.com, our members help their clients plan ahead for tax season so that getting through it is not only stress free, but also a time full of tax savings. Even if you’re not a CTC member, below are 5 tips you can use to stay organized for tax time. …

Have you filed yet? As I write this, there is about one month left until the 2012 income tax filing deadline, which is April 17 this year. Given that, I thought I'd throw out a reminder that if you have not filed yet, you can learn about what help is out there for free. In fact, even if you make a lot, you can still file a federal income tax return for free using our 'Fillable Forms' Free-File feature at IRS.gov. That said, I'll start there, with some available free options. 1) IRS Fillable Forms: Here's the deal with this feature — there is no income limit to use it, but you want to use it …

First Command Financial Services FORT WORTH, Texas – As Americans continue to adopt a new frugality in their financial lives, financial advisors are encouraging parents to teach these same values to their children by dispelling the common money myths that have been at the root of many of our nation’s recent financial troubles, according to First Command Financial Services, Inc. A survey of more than 340 First Command financial advisors reveals that respondents believe parents who want to foster financial responsibility in their children should emphasize several potentially destructive …

Editor's Note: The following is a release from First Command .Active-duty servicemembers are a financially literate lot, earning an average grade of 77 percent on a test of financial knowledge jointly commissioned by First Command Financial Services, Inc., and First Command Educational Foundation.The average middle-class military family (senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000) correctly answered 6.97 out of nine questions in a general financial literacy test administered through the First Command Financial Behaviors Index…

Who has to file a Federal Income Tax Return in 2012? It's a question I get from time to time, so here's the skinny: Whether you’re required to file a return depends on the type and amount of your gross income, filing status, age, and whether someone is eligible to claim you as a dependent. A taxpayer who is not the dependent of another taxpayer is required to file if his or her gross income exceeds the dollar amounts in the below chart. (In determining gross income, do not include social security benefits received.)   2011 2010 2009 Single                   $9,500 $9,350 $9,350 Single (65 and…

By Jim Garamone American Forces Press Service Service members now will receive imminent danger pay only for days they actually spend in hazardous areas, Pentagon officials said Thurday. The change, which took effect Wednesday, was included in the 2012 National Defense Authorization Act, which President Barack Obama signed into law Dec. 31. "Members will see the prorated amount in their Feb. 15 pay records," Pentagon spokesman Navy Capt. John Kirby said. The act called for DOD to pay service members imminent danger pay only for the time they spend in areas that qualify for the pay. In the past…

The Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) programs are community based partnerships managed by the IRS that provide free tax return preparation assistance to low-to-moderate income taxpayers, seniors, people with disabilities and non-English speakers. In 2012, we are talking about simple(r) returns with incomes generally less than $50,000 as far as eligibility goes. More, including a list of what to bring here. These are two critical outreach programs that provide free tax return prep to thousands of taxpayers throughout the southland. The Earned …

First Command Financial Services FORT WORTH, Texas – Plans to cut billions in federal defense spending and a proposed overhaul of the military retirement system are fueling worries among active-duty service members about the future of their careers in the armed forces.Recent survey findings from the First Command Financial Behaviors Index® reveal that 37 percent of middle-class military families (senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000) are concerned about their future in the military. Top worries cited by servicemembers or …

Editor's note: The following analysis comes from a First Command Financial Behaviors Index release. At a time when the Pentagon is considering plans to cut the military by close to 500,000 service members, men and women in uniform are worrying about employment prospects for out-of-work veterans. Recent survey findings from the First Command Financial Behaviors Index reveal that 70 percent of middle-class military families (senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000) are only “somewhat confident” or “not confident” in employment…

The IRS estimates that about 60 percent of all individual (federal) income tax returns are prepared/completed/submitted by tax professionals. Despite the fact that IRS e-file is now the norm, that 60 percent number has remained fairly steady over the last few years. As a matter of fact, chances are your tax guy/gal is e-filing on your behalf...and beginning this year, just about all tax pros will have to e-file. See more on that here. So, once you get all your W-2s, 1099s, 1098s, etc., at some point this month (or later) are you going to hit 'enter' yourself or choose a tax preparer? If you …