Deleeted

[Guest rickb54]

deleted

Edited February 19, 2007 by rickb54

[john999]

Terry

You must be talking about the AMT. I don't think we have to worry about that on 2600 a month. The politicans think we should get less because compensation rates are tied to manufacturing economy not low wage service economy we have now days. Now the High School grad who leaves the Army probably works for minimum wage. That is the only reason the Army and Marines call even get new enlistees. High School grads have no future in this economy.

[Guest jangrin]

Dear Fellow Veterans & Friends

Actully we are getting off light loosing only a dollar or so a month. Everyone else pays taxes on there incomes and as they get COLA they go into upper income tax brackets. Now days middel income pays 50% with a special higher tax when they reach a certan income level. This higher Tax was for the rich income 30 years ago but now the middel income pays that tax now.

We may loose a dollar here and there, but at least we dont get put into the higher tax bracket.

Terry Higgins

Terry,

I agree this is the income tax rate for single for 2007. Having to pay 10, 15 or more percent of the VA compensation entitlement could potentially be quite a bit out of ones pocket.

Link to 2007 tax rates..

http://taxes.about.com/od/2007taxes/qt/2007_tax_rates.htm

For a 100% iu or schedular vet the yearly amount of taxes would be $2471.00 X 12 months= 29652.00 if this were taxed it would be in the 15% and your would be paying $4448.00 before deductions on the income tax return each year assuming you had no dependents.

This is a really a good thing to have the VA campensation as non-taxable income. Hopefully our congress and others won't mess with this over the next few years to try and save money by changing the tax exempt status on this income.

Income Tax Withholdings

Calculate withholding instantly. Easy payroll online. No software.

Single Filing Status

(single Rate Schedule X)

10% on income between $0 and $7,825

15% on the income between $7,825 and $31,850; plus $782.50

25% on the income between $31,850 and $77,100; plus $4,386.25

28% on the income between $77,100 and $160,850; plus $15,698.75

33% on the income between $160,850 and $349,700; plus $39,148.75

35% on the income over $349,700; plus $101,469.25

Edited November 24, 2006 by jangrin