Quotable: Eli Broad

"There is no substitute for knowledge. To this day, I read three newspapers a day. It is impossible to read a paper without being exposed to ideas. And ideas.. more than money.. are the real currency for success."

Income Tax Info on the MSRRA

Well, my previous post on the Military Spouse Residency Relief Act has generated a lot of comments.  I love it!  Obviously, there are many questions about what this Act is going to mean once it is fully interpreted and the individual states change their laws and practices.

Today, I'm going to talk about the income tax aspect of the Act.  This is the part that has interested me the most.  We've usually kept our cars in my husband's name (to make Virginia happy) and I've always kept my Florida driver's license and voter registration.  This was only a problem one time, when I wanted to take some college classes in Virginia, but it was a long time ago and those issues have been resolved by previous legislation.  However, paying taxes in multiple states is annoying and time consuming!  Any change that makes tax time easier is a good change in my book.

While this act was being written and passed, there was a lot of discussion about whether it meant that military spouses would be able to pay income taxes to their permanent residence state instead of the state in which they lived or worked.  Now that the dust has settled, it appears that is the case.  Based upon my reading of individual state replies and President Signs Military Spouses Residency Relief Act, published in the Journal of Accountancy, it seems that military spouses will be able to pay state income tax to the state that they claim as their residence.  If that state does not tax income, then the spouse will not be required to pay state income tax.  Whooohoooooo!!!!  What a blessing for military families.

So far, most information of the information available has come from individual emails that have been published at the Military Spouse Residency Relief Act's Facebook page.  I'm not going to cut and paste them all here - you can click on the link to see what people have heard from your individual state.  However, I will compile a list of links once the individual states begin to publish their new directions online.I know that we're all excited to learn more, but it will take time for it to be organized and implemented.  Hang tight and I'm sure it will all come clear in the coming weeks.

2010 Commissary Scholarships

Every year, the Defense Commissary Agency (DECA) offers a huge scholarship program, awarding at least one scholarship at each location that has a qualifying applicant.

The 2010 program has opened and applications can be obtained at your local commissary, through the link at the DECA website, or more directly at the scholarship website.  Eligibility requirements include:

1. Unmarried, children under the age of 23.


2. Dependent of active duty, reserve/guard and retired military, plus survivors of active duty or retired members.


3. Enrolled in DEERS and have current dependent ID card.


4. Enrolled in a full-time undergraduate program.


5. Community college students must be enrolled in a program that transfers to a 4 year school.


6. Minimum GPA of 3.0 (out of 4.0).


7. Not be receiving a full scholarship or attending a military academy or military academy prep school.

This is a great opportunity to help pay for college.  More details can be found at the scholarship website.  Applications require an essay and must be received by the commissary by February 17, 2010, so don't procrastinate!

Quotable: David Bach

"Financial education needs to become a part of our national curriculum and scoring systems so that it’s not just the rich kids that learn about money.. it’s all of us."

Military Spouse Residency Relief Act

Good news on the homefront!  The Military Spouse Residency Relief Act was passed by Congress last week and is awaiting the President's signature.

Here is the body of the press release:

Washington, DC –Tuesday, November 3, 2009. A comprehensive military family legislation, the Military Spouses Residency Relief Act (S 475 and HR 1182), which will legally recognize military spouses by providing them the option to claim the same state of domicile as their active duty spouse, passed through the House and Senate with strong bipartisan support, and is now being brought before the President to become a law.

The bill was introduced by Congressman John Carter (R-TX), who represents Fort Hood, the largest military installation in the country. “This is fantastic news for our service families worldwide,” says Carter, who has been pushing the legislation for the last three years.

Senators Richard Burr (R-NC) and Dianne Feinstein (D-CA) introduced the companion bill into the Senate, which passed unanimously in August. The legislation will amend the Servicemember’s Civil Relief Act (SCRA) of 1940 allowing military spouses to share a home state with their spouse, the service member.

Currently, military spouses experience impediments in voting and property ownership as well as deterrents in employment and education. The bill offers fair treatment of the military spouse and improves the quality of life for military families by allowing the stability of a single state of domicile to call home.

Over 8,000 military spouses, friends and family members united to support the Military Spouses Residency Relief Act on Facebook. http://www.facebook.com/pages/Military-Spouses-Residency-Relief-Act/51457362877 They shared their individual stories as they contacted Congressional representatives to ask for support. Initially, Army Spouse, Rebecca Poynter and Navy Spouse, Joanna Williamson, approached Congressman Carter with their request to petition. “It has been a grass roots effort by thousands of spouses across the country, who have campaigned to get this passed, by telling their stories,” explains Poynter.

“The support from Military Officers Association of America (MOAA) and the Veterans Service Organizations who testified in our support is greatly appreciated,” said Williamson, “and together we claim this victory for all military families.”

This is exciting news for military spouses and will undoubtedly save us all time and possibly even money.

More info on how the MSRRA impacts your income taxes.

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The Career Advancement Account Process

I've written before about the amazing Career Advancement Accounts being offered by the Department of Defense via Military One Source.  I've been dawdling my way through the process of applying for financial assistance through the CAA system and I'm nearly done - just in time to register for spring classes.

The application process itself is pretty simple.  First, you create an account.  Write your password down (seriously; I've had to reset mine several times.)  Once you've created an account, you'll be shown a simple checklist of the steps, including:

• Agreeing to the Statement of Understanding that outlines the program.
• Enter your previous education.
• Enter your career history.
• Create your career and training plan.  (This part is slightly tough if you're not exactly sure what you want to study, such as if you are choosing between two variations on a similar degree.)

Once you've created a plan, then you send a message requesting that your plan be approved.  The program is currently quoting a four week wait for approval so be sure to start the process in enough time.  When you receive your approval, you then update your account each time you register for new classes.(within 90 days of the start of classes.)  The CAA payments are made directly to the school.

This seems like a no-brainer to me - free money for school.  I have a lot of questions about how long this program might last so I'm going ahead and taking my classes now even though this isn't exactly the right time for our family.  I hate to be pessimistic but you know how sometimes these things get changed as time goes by and I would hate to miss out on such a generous offer..

VA Goes YouTube

The Veteran's Administration has begun posting YouTube videos to help answer questions and highlight VA benefits.  One of the most recent videos highlights the VA Emergency payments:

Be sure to check out the VA channel - there are nearly a hundred videos available there, with topics ranging from Mini-Mitral Valve Surgery to Water Wise Landscaping.

Emergency GI Bill Benefits

As you may have heard, some people using their GI Bill benefits are having some trouble getting paid as the VA struggles to keep up with the huge number of beneficiaries who are using the new GI Bill benefits.  Fortunately, the Secretary of Veteran's Affairs has authorized emergency checks of up to $3,000 for students who have applied for benefits but haven't yet received them.  Students will need to get a VA office in order to receive the checks.

The full information can be found at the VA Website or check with your college's financial aid offices.

Three Steps to Moving Past Financial Mistakes

Everyone makes mistakes sometimes (see my post yesterday), and mistakes will happen in your financial life.  It is unpleasant, often expensive, and most of all, utterly inevitable.  Here's the important part:  looking at them, seeing what you need to learn or change, and then letting it go far, far away, never to haunt you again.

What do I mean?  Surely there has been some time in your life where you've messed up with your money.  Whether it is the medical bill you had to pay because you didn't get it properly cleared through Tricare first, or the late payment fee on your credit card, or the snazzy new car you paid too much for, mistakes happen, even to really amazingly savvy people.  Of course, no one wants to make these kind of mistakes and we're all striving to avoid them (as we should) but there is a strategy for learning without obsessing or beating yourself up unnecessarily.

First, look objectively at what happened.  What could you have done differently to prevent it?  (Disregard the actions of anyone or anything else - just analyze your own behavior.)

Second, see how you could change your financial systems to prevent this from happening again.  If necessary, set up overdraft protection, find a better filing system, or do whatever else you need to do to make it hard to make the same mistake in the future.

Third, move on!  This is hard for me (I'm still stewing over a medical bill from several years ago, one that could have been prevented if I'd followed Tricare's rules in the first place).  Time helps, but you can also try more active techniques such as writing it down and ripping it up.  It also helps to remember the times that surprise money has fallen into your life - assuming your financial mishaps aren't a regular occurrence, they're probably being pretty balanced out by the windfalls.

Just knowing that no one manages money perfectly should help you feel less guilty when things go awry.  If you can look at the expense as tuition in an educational experience, and use your knowledge in the future, it should lessen the blow a little and let you move on.

Click here to find the main page of The Paycheck Chronicles.

American Public University offers Scholarships

This one isn't military specific, but still worth the effort:  American Public University, an online university offering 74 degree programs, is offering 15 full tuition scholarships.  Applicants must submit a 500 word essay on their goals and how a degree will help them meet those goals.  The application deadline is October 31st.  More information can be found at the website.

Click here to go to The Paycheck Chronicles main page.

In-State Tuition - Hurrah!

Good news!   Beginning July 1, 2009, states are required to offer in-state tuition to active duty military members, their spouses, and dependent children, who reside or are permanently stationed in their state. In addition, once enrolled and paying in-state tuition, they will not lose the in-state tuition rate if the service member is reassigned outside the state, as long as they remain continuously enrolled at the institution.  This is a great change for military families across the country. 

This change is a part of Higher Education Opportunity Act (H.R. 4137), which extends the Higher Education Act of 1965 (HEA), and applies to all public institutions that receive funds under the HEA program. 

The Department of Education has worked with the states and their university systems to ensure that they are aware of the changes in the law.  If service members or their families find that their school is unsure about the law, they should contact the financial aid, registrar’s, or Veterans Affairs’ office at the institution. If they are unable to resolve the situation at the school level, they can contact the Department of Education’s Ombudsman’s office (toll-free at 877-557-2575) or utilize the online Ombudsman Assistance Form: www.ombudsman.ed.gov/OmbudsmanWebApp/do?action=getRequest. 

As a military spouse who has paid out-of-state tuition on more than one occasion, I am delighted to see this change occur.  This will remove one more barrier to pursuing further education and improve the quality of life for many military families.

GI Bill Transfer Details Announced

The transfer portion of the new GI Bill has been very exciting for many people, and lots of questions have now been answered.  The Department of Defense has released the final details of the new policy to allow the GI Bill benefits to be transferred to a spouse or eligible child.

Military service members are eligible to transfer their Post 9/11 GI Bill benefits to a spouse or child if:

• They have at least six years of active service (including active duty and selective reserve) and agree to serve an additional four years, or
• Have at least ten years of active service, are unable (by policy or statute) to commit to an additional four years, and agree to serve for the maximum allowable service by said policy or statute.
• For service members eligible to retire between August 1, 2009 and August 1, 2012, there is a phased-in requirement for continued service, up to three years.

The full Pentagon policy is located here.  This is an amazing benefit for military members so be sure to learn all the details and figure out the best way for it to benefit your family.  Whoohoo!

Operation Homefront Scholarship

Operation Homefront has announced it's 2009 Military Spouse Scholarship Program.  The scholarship offers 37 awards between $10,000 and $1,500 and the application deadline is July 15th.

The scholarship award is available to spouses of military service members for study at  a four-year college or university, graduate school, accredited trade school, certificate program, vocational school or community college. The applicant must be the spouse of a military member currently serving on active duty, whether active duty, Reserve or a member of the United States National Guard (Reserves or National Guard qualify if they have served 180 combined days of full time military duty since January 1, 2007).

Selection for the scholarship will be made by a panel of judges and the award will be scored in three areas: the applicant’s response to the essay question, his or her commitment to volunteerism and grade point average.  Applications are available at Operation Homefront (the link is about half way down on the right hand side).

New GI Bill Calculator: It's Ready to Use!

Military.com has some exciting news:  Our new GI Bill Calculator is ready to go.  This calculator will allow military members and veterans, spouses, guidence counselors and anyone else to figure the details of the new GI Bill, and compare the benefits of the post 9/11 GI Bill with the older Montgomery GI Bill.  I'm sure there are many of you who will find this new tool very valuable!

This new calculator is part of the overall effort to constantly improve the Education section of Military.com.  The team has been working hard to make it a clear and complete guide to all the educational benefits that can come from your military service.  The new GI Bill has dramatically increased the value of your education benefits - be sure to use them!

From the Military Report

Lots of good financial information from this week's Military Report:

Housing Assistance Program

Tuition Top-Up Program 05-25-09

Value-Added Whole Life Insurance for the Entire Family

Exchanges Cancel Money Order Program

ThanksUSA Scholarships for Military Families

Military OneSource Expands Counseling

AF Clubs Offer Free Membership

Military 'Portable Lifestyle' Website

There is so much to learn and read - thank goodness Military.com puts it all together in such a neat little package.

Deadline Soon! Military Spouse Career Advancement Account

The Military Spouse Career Advancement Account is a Department of Defense initiative to help military spouses (including activated Guard and Reserve spouse) prepare for portable careers.

There is a lot of information and it isn't all easy to understand.  Basically, the program was tested in many locations last year and is expanding to the rest of the DOD.  I'm having trouble finding exact dates, but I have seen it published that applicants should do the preliminary registration by the first week in May.  In order to register, go to MyCAA Homepage and click on the Create An Account link.  The registration process is pretty easy and doesn't require you to have a plan yet.  At the MyCAA, you can also look for programs of study and participating colleges.

Links to more information include: Military One Source info page, MyCAA FAQ page, Army.mil announcement page.

This has the potential to bring advanced training to lots of military spouse.  Without any firm details, it seems smart to go ahead and register today.

Another Scholarship Opportunity

I've just read about another scholarship for the children of military members who have been killed or permanently disabled in an operational mission or training accident.

From their website, "The Mission of Freedom Alliance is to advance the American heritage of freedom by honoring and encouraging military service, defending the sovereignty of the United States and promoting a strong national defense."

The Freedom Alliance Scholarship is available to high school seniors, graduates, or undergraduate students.  For more information, see the website at www.fascholarship.com.  If you know anyone who would qualify for this scholarship, please be sure to pass the information on to them.

GI Bill Updates

The Department of Veteran's Affairs has released the final version of their rules on the Post 9/11 GI Bill that will become effective in August of this year.  Terry Howell of Military.com has done an excellent piece on the key points of the lengthy document:  VA Sheds Light on Post 9/11 GI Bill Rules.  Nearly every question has been answered here.  To keep up with the developments on the new GI Bill, follow Military.com's Military Education Blog.

Pat Tillman Scholarships

The Pat Tillman Foundation, created to "carry forward Pat's legacy by inspiring people to make positive changes in themselves and in the world around them," has announced their two generous "leadership through action" scholarship programs, one for military members and one for dependents of military members.  These scholarships are available to most current and former military groups, including all branches of the services, the National Guard and Reserve, and include veterans.  I think that these scholarships are a little unique in that they offer support for undergraduate, graduate, post-graduate, 2-year, 4-year, public, private, vocational, and trade degrees or certifications - that's pretty much any sort of education you could desire!

The Servicemember Scholarship Application and instructions are located here.

The Dependents of Servicemember Scholarship Application and instructions are located here.

The deadline for applications is May 14th, 2009.