Military Officer - March 2009 - (Page 39) washingtonscene VA Care to Expand people making more than $75,000 a year ($150,000 for married couples). The House bill would eliminate it for those with incomes of more than $100,000 ($200,000 for married couples). The Senate bill would deny any relief to those with incomes above $87,500 ($175,000 married). The Senate (but not the House) also proposes a one-time $300 payment to Social Security annuitants and VA disability recipients. MOAA asked the Senate Finance Committee staff whether a currently working disabled veteran would qualify for both the tax reduction and the $300 payment. They said the intent is to provide a maximum total payment of $500 (single) or $1,000 (married). A working disabled veteran would get the $300 payment first, and also would see the full reduction in the income tax withholding from his or her employer. The rub would come at the end of the year, when such people could find themselves “under-withheld” by $300. In other words, if a veteran gets the $300 up front and also qualify for the maximum $500/$1,000 tax withholding, he or she will end up having to pay the $300 back in taxes at the end of the year. So working disabled veterans might want to ask their employers to increase their withholding by enough to make up the $300 difference by the end of the year. Another key provision would help military and federal civilian homeowners who suffer losses on a primary residence purchased before July 1, 2006, and who received PCS orders or suffered a wound, injury, or illness while deployed between that date and Sept. 30, 2012. The wounded, ill, or injured servicemember/employee would qualify only if the condition were subsequently rated as at least 30-percent disabling by DoD or the VA and the servicemember was reassigned for medical treatment or rehabilitation or was medically retired. If the MARCH 2009 More nondisabled will qualify. T he VA is gearing up to expand opportunities for certain “Priority 8” (nondisabled, middleincome) veterans to enroll in VA health care. Since January 2003, Priority 8 vets have been barred from enrolling because their income exceeded the VA’s means test threshold. A new regulation is in the works to modify that. It’s expected to take effect in June 2009 and will be applied retroactively to all enrollment applications received on or after Jan. 1, 2009. This won’t be a blanket opportunity for all Priority 8 veterans to enroll. The new rule will authorize enrollment only for those nondisabled veterans whose income exceeds the current means test thresholds by 10 percent or less. The thresholds vary by locality. It’s estimated that up to 265,000 additional veterans will be able to enroll. More Key Bills I As this column was being written, only a limited number of bills had been introduced. By the time you read this, the list should be much longer. Check out http://capwiz .com/moaa/issues/bills for an up-to-date list. Hill Pushes Stimulus Plan includes tax cuts and military homeowner help. T he central feature of the $825 billion economic stimulus package Congress was working on in early January would reduce income tax withholding and liability by $500 for singles and $1,000 for married couples. The reduction would apply only to those currently employed — not retirees. Both the House and Senate bills would start phasing out this tax relief for MILITARY OFFICER 39 http://capwiz.com/moaa/issues/bills http://capwiz.com/moaa/issues/bills
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.