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As everyone knows, I'm in the Corps and have been since I came back in in September 96. Well, I go to file my taxes tonight and I owe KY (my home of residence) $128. I usually get between $26-48, but not this time. I spent 3 months of last year in Iraq and it was tax free. So, I understand about that. But, what else ticks me off is, I still have to file in KY as a FULL TIME RESIDENT. Then, to beat all, my wife's 401K she got last January was added to my money earned for KY. Lastly, H&R Block charged my wife and I $275 for filing, Federal, NC and KY state, I understand it's a business, but just makes me mad. Between the two of us, we made $52,000, and included was the $4191 in her 401K.

Oh, I'm going to call my Congress woman tomorrow. I can't believe this crap. I haven't been home, longer than 1 week at a time, since 96 and I still owe taxes.

SORRY about the venting good people and thanks for listening.
 

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Jeff, I didn't know anything about that. I will check it tomorrow, thank you very much.

Leo, I was going to try that, but admin said that I would have to show "proof" of residence in that state. I was going to change it to NC, but then I would have to pay taxes on all my personal property. Then, NC will tax my retirement check from the Corps once I retire. Kentucky doesn't tax my military retirement; as of now.
 

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As everyone knows, I'm in the Corps and have been since I came back in in September 96. Well, I go to file my taxes tonight and I owe KY (my home of residence) $128. I usually get between $26-48, but not this time. I spent 3 months of last year in Iraq and it was tax free. So, I understand about that. But, what else ticks me off is, I still have to file in KY as a FULL TIME RESIDENT. Then, to beat all, my wife's 401K she got last January was added to my money earned for KY. Lastly, H&R Block charged my wife and I $275 for filing, Federal, NC and KY state, I understand it's a business, but just makes me mad. Between the two of us, we made $52,000, and included was the $4191 in her 401K.

Oh, I'm going to call my Congress woman tomorrow. I can't believe this crap. I haven't been home, longer than 1 week at a time, since 96 and I still owe taxes.

SORRY about the venting good people and thanks for listening.
I'm no tax expert, but something doesn't sound right here. The only reason you would have to include a 401k as income is if you cashed out, or rolled it into a non-tax deferred account/investment. Does the military withhold KY state tax from your pay? If not, the rules for that state may indicate that if you spend a certain amount of time in the state, you must pay tax on the portion of your income that was earned while you were there (i.e. leave for 30 days). That's how California worked when I was in the Army.
 

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I used the Military One Source and the state was free too...
I'd go back to HR Block and check for error in your federal and state returns

Kansas said I owed them $1789 so deducted my military compensation and Kansas owes me a refund. I claimed MO as state of residence but the wiff earned income in KS. MO does not tax income earned while out of state serving in the Military. Oh but I know KS is going to get me this year with a military pension and income earned working in the state. So I have to find out if KS taxes military pensions. Hummmm

If you have an address of a relative living in a state that does not tax your military income you can use that for admin purposes as your state of residence and keep KY as your "Home of Record."
Annndddddd Combat Zone or Hazard Duty income earned can be taxed by some states. The Tax Free only applies to federal. So be careful and review your LES every time to ensure enough withholding is taken out.

Good Luck
 

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All assets in 401(k) plans are tax deferred. 401(k) contributions are on a pre-tax basis (i.e., no income tax is withheld on the income in the year it is contributed), and the contributions and growth on them are not taxed until the money is withdrawn.

Reading your post, I'm not sure if you are saying that your wife put the money into her 401k plan, or took money out of the plan. Unless your wife took money out of the 401k, I do not understand why they would include a contribution to a 401k plan in your taxable income. I would go back to H&R and ask for an explanation. There are exceptions, but I don't see any would apply.

I don't know your situation and I am not familiar with Kentucky's tax laws, but I went to Kentucky's web site and looked at the tax forms and guides and do not see where a 401k would be taxed unless it is a withdrawal of money from the 401k. Personally, I would not trust H&R Block to do my taxes and certainly wouldn't pay them $275 to do them. I would go to a good local licensed CPA. You are probably more qualified to do taxes then the people they pull off the street at H&R Block and put behind a desk & computer.
 

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I hate income taxes...we max out our 401K and Roths and still gotta pay every year. :mad: Double income with no dependents.
 

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Bill...... I thought you were supporting two Kids..... a 70 & 66 :D
tell em the 66 just had a heart transplant !!! ;)
 

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Bill...... I thought you were supporting two Kids..... a 70 & 66 :D
tell em the 66 just had a heart transplant !!! ;)
:D
Great idea!! I'll just enter the VIN on the line where the social security number goes! :thumbsup:
 

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JYags has it right regarding the 401(k) rules (and regarding many H&R Block folks, but I may be biased - I'm a CPA!).

There may be one situation, however, where 401(k) contributions are currently taxed. Starting in 2006, some plans may allow for after-tax contributions to a Roth 401(k) account. Similar to Roth IRA's, the money contributed is currently taxed, but grows tax-free and is tax-free when withdrawn.

Hope it all works out well for you!

Ted
 

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You know, the base has a free tax service and the folks that work there go to the same school as H & R Block. I think I would have the base run up the numbers and see what happens. They tend to be more familiar with other state returns than the average company outside the gate.
Your "home of record" will never change since that is where you entered the Corps. Your "home of residence" can be where ever you choose. Most of the Wing guys I know are FL residents since they go to schools there and their pay is tax exempt.
 

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Discussion Starter · #15 ·
My wife withdrew her 401K last January, she was taxed then and she had to pay another 400 plus in a penalty fee this time.

The lady at H*R Block is a Marine, she works there on her off time. So, that's why I chose that particular H&R Block. As far as base, the last time I used the base tax service it was a disaster. So, my wife doesn't want to go through that again.

Kentucky does take taxes out on me, usually in the $2,500-2900 range. This years taxes did include 3 tax free months. But, that shouldn't have made that big of a difference in my return; well this case me owing.

The rules for me filing KY taxes apply (the tax preparer showed me this) and it says, "military files the same as a Ky resident". That's not the exact wording, but you guys understand what I mean.

Thanks for the input guys, I do appreciate it.
 

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SSgt Allen,

One more thought before this thread dries up. Now that you've had H&R Block do your taxes for you, I would recommend that you find a copy of Turbo Tax and do your taxes at home to see how close you come in the end. I think you will be surprised at how easy it is to use, and that way you can save some money next year by doing your own taxes.

Good luck, and best wishes:
Dave
 

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Discussion Starter · #17 ·
Dave, thanks for the heads up about the turbo tax idea. The wifey poo wants to use H$R Block because of a bad experience a few years back. The "guarantee" they offer makes her feel good, and I don't like to argue. But, I do plan to take our tax info to someone else Friday though. Thanks again.

Oh, you can call me Wally by the way. :)

I looked over your link and that's a very nice El Camino. Just so you know, those traction bars are pretty good in my opinion. I have a similiar type on my Mustang and they work very well for me. Take care
 

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Discussion Starter · #19 ·
I can certainly understand your position -- when CINC-HOUSE talks, we listen! Thanks for the complements on my car -- you have some nice metal yourself based on the links in your signature! Are all those cars yours?
I have my 71 Chevelle (2 photos of it), 92 Mustang GT (Red), 07 F150 (Pearl White) and the 80 Honda 750F Motorcycle (Red). I think I messed something up when I was putting my pictures on here, so some of the cars/trucks aren't mine. Oh, I have a photo of my family and I standing behind my project 74 GTO that I had at one time.
 
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