Military Saves Blog
Tips, advice, and the latest news from the savings world.
Each tax season, Americans are bombarded with numerous IRS scams and fraudulent schemes. There are lots of myths and urban legends floating around social media and the internet. Taxpayers should take caution and know that:
Have a plan in mind when you file your taxes. If you’re due a refund, go ahead and split it up into multiple accounts (think checking, saving, and retirement or college saving account) using the 30-40-30 plan:
- 30% of your refund to pay off outstanding debts or catch up on bills
- 40% of your refund to pay for current expenses, needs, or wants
- 30% of your refund to establish or build up savings. This could be an emergency fund (start with $500) or longer-term like retirement or a large purchase like a home.
Use IRS Form 8888 to split your refund in up to THREE accounts. Form 8888 can be accessed with your tax preparer during your tax preparation appointment. It’s easy to use, so don’t forget to ask if your preparer doesn’t suggest it.
PRO TIP: Add the account and routing numbers or blank checks of the accounts you are using for the 30-40-30 plan to your tax documents folder so you’re ready to fill in Form 8888 before your complete your tax return.
It’s our favorite way to save, automatically and through direct deposit.
Filing income tax forms can be a complicated and somewhat painful process. Gathering documents is a chore. Tax forms can seem confusing to the uninitiated. And military families face additional obstacles at tax time: they may not know about certain military-specific tax provisions that can benefit them, and they are also prey to certain tax schemes that target the military community.
Sometimes deployments come with advance notice, but other times they can be sprung upon military families suddenly. While service members generally go through some pre-deployment processing, family members do not. Here are some tips for preparing for a deployment.
FOR IMMEDIATE RELEASE: December 16, 2019