Military Pay Newsletter – April 2006
Army members can get reissued or corrected W-2s
Reissued W-2 forms may be issued by any DMPO, FO, USPFO, RCPSO, or Regional Support Command (RSC)/Regional Support Group (RSG). This includes W-2’s for active duty, National Guard, reserve, separated, or recently retired soldiers (including in transit and TDY soldiers) who do not have access to myPay to obtain a reissued Form W-2.
Active duty or Active Guard Reserve (AGR) soldiers who require a corrected Form W-2C must go to their servicing DMPO, FO, or USPFO. Requests from individual service members will not be accepted by DFAS-IN. The member will be informed to contact their DMPO, FO, or USPFO. The Form W-2C will automatically be mailed to the soldier’s unit. The W-2C is now available in myPay.
Separated Active Component and Active Guard Reserve soldiers who are unable to visit a DMPO, FO, or USPFO may write to DFAS Indianapolis Center, ATTN: DFAS-PMTCB/IN, 8899 East 56th Street, Indianapolis, IN 46249-0875, or fax 317-510-2992 to obtain a Form W-2C. Written requests should include all documents that substantiate the need for a corrected Form W-2. They may also call toll free 1-888-DFAS411 (1-888-332-7411) for assistance. Soldiers who separated with a debt and request a reissued and/or corrected Form W-2 should be advised to call DFAS Denver Center Customer Service at 1-800-962-0648.
Mobilized guard and reserve soldiers and separated mobilized guard and reserve soldiers may obtain a corrected W-2 through their servicing field Finance Office. Other Army National Guard or U.S. Army reserve soldiers will request corrected Forms W-2 by e-mail, memorandum, fax, or telephone supported by substantiating documentation. The request will include the soldier’s name, SSN, mailing address, and telephone number (including area code)
1. DJMS e-mail address is CCL-ARMY-RESERVE@DFAS.MIL
2. Memorandum: DFAS Cleveland Center, ATTN: DFAS-CL/PMMDC, 1240 E 9TH Street, Cleveland, OH 44199-2055
3. Fax: Commercial 216-522-6001 or DSN 580-6001
4. Telephone:1-888-DFAS411 (1-888-332-7411).
As a reminder, Forms W-2C will show only the dollar amounts that were changed from the original Form W-2. For example, if an adjustment was made to only federal wages, the Form W-2C will show the original federal wages field, the corrected federal wages field, and the amount of the increase or decrease between the original and corrected federal wages fields. Thus, soldiers must use both the original Form W-2 and the Form W-2C when filing their taxes.
Navy members can get reissued or corrected W-2s
How to get a reissued W-2
Active and Reserve Navy members who need to obtain a reissued W-2 are encouraged to access their myPay account. If they are unable to use myPay they can contact the Cleveland Customer Contact Center (CCC) at 1-888-DFAS411 (1-888-332-7411). For Active Duty, the CCC will reissue the W-2 and mail it to the address provided by the member or to the member’s servicing pay command. For Reserve members, the CCC will reissue the W2 and mail it to the address listed in the member’s Master Military Pay Account – unless the member provides a different address. W-2s are mailed from Cleveland within 2 to 3 business days.
Need a corrected W-2?
Corrected W-2s (W-2C) can also be easily obtained through myPay. If needed, W-2C’s are also produced and mailed from Cleveland. They are mailed within 2 to 3 business days. There are two primary reasons for which a W-2C will be issued:
1. W-2Cs will be systematically generated when combat zone tax exclusion (CZTE) with an effective date for calendar year 2005 is added or deducted from a member’s pay account during calendar year 2006. The 2005 W-2C will reflect an adjusted amount to federal wages located in Block 1, to non-taxable earned income (NTEI) located in Block 12 as a Code Q and to the state wages located in Block 16 if state tax applies. The members’ federal and state income tax withheld will not be affected. The W-2C will reflect the corrected amount and the previously reported amount in Blocks 1, 12, and 16 if applicable.
2. Bonus entitlements and payments with an effective date in calendar year 2005 (December 2005 bonuses) that were posted to the members account and paid during the period December 23, 2005 through December 31, 2005 were included in each member’s January 2006 income. This is because the entitlement and payment posted to the account during the January 2006 work month. Since the payment was actually made in calendar year 2005, the taxable income and withholding must be included in the members’ 2005 W-2 in accordance with IRS regulations. Therefore, Cleveland Military Pay Operations will remove the taxable income and withholding from tax year 2006 and add it to the members’ federal and state (if applicable) wages and withholding for tax year 2005. Accordingly, a W-2C will be issued. The W-2C will reflect the corrected amount and previously reported amount as applicable.
Air Force members can get reissued or corrected W-2s
Air Force members who need a reissued copy of their W-2 are encouraged to access myPay or contact their servicing finance office and request a local reissue. myPay is the quickest and easiest, but the finance office can request and print the W-2 on-the-spot and provide it to the member. Requests made to the Air Force Military Pay Operations will take longer because they must be mailed. If the member has failed to update his/her mailing address, the W-2 will be further delayed.
A member who believes their W-2 is incorrect must contact the servicing finance office and request a correction. The finance office will determine whether the original W-2 is correct; and, if not, establish a record in the Case Management System (CMS) and provide the justification required to generate a W-2C. The transactions are processed centrally, and the W-2C is created and posted to myPay for the member’s use. Since most Air Force members utilize myPay, only a very few will not be able access it themselves.
As a reminder, W-2Cs only reflect the amounts that have been changed – any information on the original TD Form W-2 that is not changed will not be included on the W-2C. Therefore, the form may look incomplete to members expecting that the correction will be a replacement form – it is not. The original W-2 and the W-2C must be filed together.
Marines use online forms to request reissued or corrected W-2s
For reissued (replacement) W-2s:
Marines needing a reissued W-2 can easily obtain a copy by accessing their myPay account. Otherwise, the member may get the process rolling online or via the U.S. mail service. The following directions apply to active duty, reserves, retired (in 2005) and discharged Marines.
Online requests: Use the form located at https://ca.dtic.mil/dfas/s-w2/USMCReplaceW2.htm to request a reissued W-2. All pertinent information must be provided in order for DFAS to fulfill the replacement request.
Via U.S. mail or fax: A letter requesting a replacement W-2 must include the member’s full name, Social Security Number, daytime phone number, mailing address, branch of service and status (i.e., USMC active, USMC discharged, etc.), tax year for reissued W-2, and power of attorney (when spouse or family member is requesting the form). All requests MUST be signed.
Requests should be faxed to (816) 926-5829 or mailed to DFAS-KC, Admin Branch (Code N), 1500 East Bannister Road, Kansas City, MO 64197-0001.
Call (816) 926-7145 for assistance.
For corrected W-2s (all Marines except reserves):
All current and former Marines can obtain a corrected W-2 by accessing their myPay account or request a W-2C by going online at https://ca.dtic.mil/dfas/s-w2/USMCCorrectW2.htm. Requests may also be submitted via U.S. mail to DFAS-KC, Admin Branch (Code PMMCB)
1500 East Bannister Road, Kansas City, MO 64197-0001. Faxed requests should be sent to (816) 926-5829.
All requests should include the member’s full name, Social Security Number, daytime phone number, mailing address, branch of service and status (i.e., USMC active, USMC discharged, etc.), tax year for reissued W-2, and power of attorney (when spouse or family member is requesting the form). All requests MUST be signed.
Call (816) 926-7145 for assistance.
For corrected W-2s (Marine Corps Reserve only):
Marine Corps reserves can obtain a corrected W-2 by accessing their myPay account or request a W-2C by going online at https://ca.dtic.mil/dfas/s-w2/USMCReserveCorrectW2.htm. Requests may also be submitted via U.S. mail to Marine Corps Mobilization Command Reserve Pay, 15430 Andrews Rd, Bldg 605, Kansas City, MO 64147-1219. Faxed requests should be sent to (816) 843-3788.
All requests should include the member’s full name, Social Security Number, daytime phone number, mailing address, branch of service and status, tax year for reissued W-2, and power of attorney (when spouse or family member is requesting the form). All requests MUST be signed.
Call (816) 843-3781 or 3784 for assistance.
Combat Zone Tax Exclusion (CZTE) for Wounded Warriors
Military members who served in a combat zone or qualified hazardous duty area (QHDA) and are hospitalized or re-hospitalized for more than 24 hours as a direct result of an injury sustained during service may be entitled to Combat Zone Tax Exclusion, or CZTE.
CZTE allows military members to exclude all or a portion of pay and entitlements earned while serving in designated combat areas from tax liabilities.
Qualification for CZTE in a combat zone or qualified hazardous duty area (QHDA) is authorized for each month during which the service member is hospitalized or re-hospitalized for more than 24 hours as a result of wounds, disease, or injury incurred while serving in a combat zone or QHDA. The service member must meet the qualifying criteria for all or a portion of a month in order to claim CZTE for that month.
CZTE qualification extends up to two (2) years after the date of termination of activities in the CZTE/QHDA area if the service member is still hospitalized. The amount of tax exemption remains the same – maximum per month for 2006 is $6724.50. Although most soldiers will not exceed this amount, some field grade officers might.
Members who have any questions about CZTE or think they may qualify to receive CZTE should contact their local finance office.
Helping reservists fill the pay gap
The Reserve Income Replacement Program (RIRP), part of the 2006 National Defense Authorization Act, authorizes the Secretary of Defense to pay income replacement to eligible involuntarily mobilized members of the reserve component.
It is hoped this program will reduce the financial stress placed on the family when a reserve member is called to active duty causing a reduction in the monthly household earnings.
The program will pay eligible members an amount equal to the difference in pay between their military pay and their civilian employment pay if greater than $50.00.
Reserve members with private sector income that exceeds their active duty income would be eligible for the income replacement payment for:
1) Any full month following the date that the member completes 18 continuous months of service on active duty;
2) OR 24 months on active duty during the previous 60 months;
3) OR for any month during a mobilization that occurs within 6 months of the member’s last active duty tour.
Payments would be limited to a minimum of $50 each month and a maximum of $3,000 each month. This authority will end in December 2008.
No more limits on contributions to Thrift Savings Plan
Military members now have the opportunity to increase their Thrift Savings Plan (TSP) percentage election for basic pay.
Prior to Jan. 1 of this year, the Thrift Investment Board had restrictions on basic pay percentage elections. The board eliminated those limits, allowing service members the ability to save more toward their retirement by selecting up to 100% of their basic pay after mandatory deductions.
Members contemplating increasing their contribution percentage should choose their TSP election percentage wisely and remember to consider other monthly obligations. Some considerations include:
- Carefully calculating the percentage of basic pay allocated to TSP per month keeping in mind the total 2006 IRS limitations for contribution to TSP accounts still apply. Those limits are $15,000.00 per year for regular, tax deferred contributions, an additional $5,000.00, tax deferred for those members who are 50 years old or more, and for those contributing to TSP while in a Combat Zone, tax exempt and tax deferred a maximum amount of $44,000.
- Considering all current deductions such as Social Security and Medicare tax (i.e., 7.65% of basic pay); garnishments; alimony; child support; and all allotments.
- Determining the ability to maximize TSP contributions while maintaining enough funds to support current lifestyles.
In cases where percentage elections exceed resulting pay (i.e., pay after deductions) DFAS will work with the member and the supporting finance office to provide the TSP percentage that is closest to the percentage elected.
Currently, over 538,000 service members contribute to TSP from both active duty, Guard and reserves. TSP offers tax deferral and tax exempt (for monies contributed while serving in a combat zone) advantages similar to those offered by private corporations to their employees under 401(k) plans.
The Military Pay Newsletter is brought to you by the Defense Finance and Accounting Service. For more information, visit http://www.dod.mil/dfas/. MilitarySpot.com is not affiliated with the Defense Finance and Accounting Service.