Coping with Financial Issues of COVID-19 - Part 45
By Randy Gerard, Personal Financial Counselor
/ Published February 02, 2021
ST. JOSEPH, Mo. --
Please note the frequency for my Tidbit articles will be monthly going forward, concurring with the Resiliency Team’s newsletter frequency. Following is the projected offering of AF Touchpoint briefings and my recurring drop-in opportunities. Meeting information is at the end and following is the planned schedule for February:
- 2nd - Recurring drop-in
- 4th - Recurring drop-in
- 7th - FTP – Promotions
- 9th - FTP - Promotions
- 11th - No drop-in, on leave
- 16th - Recurring drop-in
- 17th - FTP – FDS, Officer
- 18th - Recurring drop-in
- 24th - FTP – FDS, Officer
- 25th - Recurring drop-in
Filing your taxes just may be a little more challenging this year due to COVID-related Executive Orders and other adjustments. I hope the following will be helpful and as always, if you have any questions or need further help contact me.
Looking for 2020 Tax Filing Assistance? Don’t Forget Military One Source!
WASHINGTON, January 19, 2020 - Tax season can be a dreaded time of year for many people, but the Defense Department's Military OneSource offers the MilTax program to ease filing stress for service members and their families. There is no need to worry about costs in tax preparation because the services are free. MilTax kicks off on Military OneSource Jan. 22, offering electronic filing via do-it-yourself software and personalized support from a tax consultant. Please access this link for more information.
Relief from Repayment of Payroll Tax Deferral in 2020
UPDATE: The Consolidated Appropriations Act, 2021 was passed and extended the period for collecting deferred 2020 Social Security taxes. The period for collection is now January 1, 2021 through December 31, 2021 (instead of January 1, 2021 to April 30, 2021).
At the end of December, the 2020 Social Security tax deferral will end. Beginning January 2021, the normal 6.2% Social Security tax withholdings will again be deducted from pay for military members and civilians, and an additional deduction for the deferred 2020 Social Security tax collection taken from pay. Per IRS guidance (as modified by the Consolidated Appropriations Act, 2021), the Social Security taxes deferred in 2020 will be collected from pay between January 1 and December 31, 2021.
Don’t Forget Special Treatment of Missouri Military Income Taxes
Missouri Reserve Component Military Income Tax Deduction: For all tax years beginning on or after January 1, 2020, for purposes of calculating the Missouri taxable income, a percentage of the income received by any person as salary or compensation:
- In performance of inactive duty for training (IDT) of the National Guard or annual training status (AT) of the National Guard; or
- In reserve components of the Armed Forces of the United States;
...and if that income is included in the federal adjusted gross income, it may be deducted from the taxpayer's Missouri adjusted gross income to determine their Missouri taxable income.
Don’t hesitate to reach out by phone, text, email or ask for a private Zoom session for you or your family members. Be Vigilant and STAY SAFE!
Randy Gerard, PFC
C (573) 415-6934
O (816) 236-3659
This week’s thought: “No one’s ever achieved financial fitness with a January resolution that’s abandoned by February.” ~Suze Orman