U S Tax Changes You Need To Know For 2011

[Art2ro]

Besides the new changes in the tax laws for 2011, the long arm of Government is also affecting the Cost of Living for Social Security and military retirees where there will be no "COLA" for 2011! I just received the following email today from (DFAS) Department of Finances & Accounting Systems, which really sucks: COLA Update for 2011 Unfortunately, military retirees and annuitants will not receive a Cost of Living Adjustment increase in 2011. Most Survivor Benefit Plan premiums will not increase either.Yeah right! $5 a month was deducted from my annuity to cover my Survivor Benefit Plan Premium which contradicts their statement above and below they apologize for the confusion! I have two other Government pensions and don't know if they will be affected, but I'm sure I'm going to find out next pay day! Read more military and Reservist retirees:http://www.dfas.mil/...r/2011cola.html Clarification: SBP Cost for ReservistsWe understand some Reserve retirees are concerned about a recent change in their Reserve Component Survivor Benefit Plan (RC-SBP) premiums. Affected retirees also received communication from DFAS that was unclear. We're sorry for the confusion. http://www.dfas.mil/...rcsbp-cost.htmlKeep Your Records Current In order to receive your pay and other benefits on time every time, it's important to review your retired pay account information regularly to ensure it is current. Read more:http://www.dfas.mil/...er/records.html Branch of Service Newsletters Did you know that each branch of service has newsletters available online? Find the links here:http://www.dfas.mil/...ewsletters.htmlDirect Deposit: better service, better security The most efficient, timely and secure way to receive your pay is by direct deposit. Read about the benefits and find out how to enroll. Read more: http://www.dfas.mil/...ectdeposit.htmlLast Week of 2011 CRDP and CRSC Open Season Retirees eligible for both Concurrent Retirement and Disability Payment and Combat Related Special Compensation can participate in the CRSC/CRDP Open Season through the end of January. Read article:http://www.dfas.mil/...openseason.html

[No name]

Could see that coming from miles, that is, there would no COLA this year. That's two years in a row now.The COLA is based on inflation. When inflation is below 2% (I think its 2%) there is no COLA.Though it hurts me, I can be objective about it. The COLA is about cost of living adjustment. When it was introduced, people said we couldn't afford it. I thought it was the right thing to do. So if there is no cost of living increase, why should their be a COLA increase.However, for those of living abroad, there could be run away inflation in our location and still no inflation where we live.The other problem, there could be inflation of 1.9% for 10 years. Not likely but it could happen. The 2% exclusion should be removed in fairness. I don't see that happening with the current financial jam the US government is in.Instead the rich keep their Bush tax cuts. Even without those, I wouldn't happen at this time. Yeah, to me, if you're making $200,000 a year, you're rich.

[Art2ro]

It's a real sad affair how the U.S. Government is freezing our COLA across the board and still taking our nickel and dimes from every which way they can, especially what we will owe IRS after filing our income taxes this year! Last year we paid and I'm pretty sure we'll end up paying again this year! I just recently got copies of all my form 1099Rs and annuity statements for 2011 and nothing has changed pay wise and withholding taxes, except for losing $5 a month on my military pension Survivor's Benefit Plan Premiums, luckily it was only $5, but what next for 2012! Inflation will slowly eat in into our pensions from here on out unless the U.S. Government lifts the freeze on our COLA across the board! And what about the shrinking U.S. dollar value overseas? How soon will it get stronger or weaker? Everyone here in the Philippines will really be screwed when the conversion rate bottoms out and commodities increase in cost! Will there be a mass exodus back to our home countries and live out the rest of our lives in distressed States in the U.S. that we can only afford to live in? That would truly be depressing!

[Art2ro]

Well, I just punched in all of the numbers using Turbo Tax on-line to get an overall picture what I owe IRS for my Federal and State Income tax! I have to pay double from last's yrs, because I didn't change my federal withholding tax at the beginning of the year! Anyway, I expected it to double, but I did increase it by double for 2011 effective on March 1st, so that we may break even next year, but that's a big maybe! I'll just wait the last minute to finalize e-filing our taxes on-line! Anyway, I'm all done with my taxes for this year and it only took me 45 minutes, as usual all of the questions to answer were pretty cut and dry and easy to follow, just have to wait what's in store for all of us next year! BTW, we didn't have to pay State Tax for the 2 month vacation we took last year in California, the year before last we stayed 4 months and had to pay State Tax, go figure! I know what everybody will say, "why don't I change my State residency where there's no State tax"? Just lazy, because on the average, we only go on vacation in California once every 2 to 3 yrs, so it's no big deal!

Edited January 30, 2011 by Fil/AmArt

[Art2ro]

Since I've only been collecting my Social Security pension a couple of months now and still with no COLA for 2011, the U.S. Government went further than that, they also put a COLA freeze this year on military, civil service retirees and V.A. recipients! When I retired 11 years ago from civil service, I only got 42% of my annual income as my pension, but fortunately I recouped 75% of it back and then some from all the past COLA increases in 11 years making our life somewhat financially stable today from all of my 4 pensions! Yeah, I'm beyond the "Triple Dipper" kind of guy, some people may think unfair or unheard of working for the U.S. government! Hey, it was their system at that time, but no more, not now or ever again, because I just managed to slip under the "Grand Fathered Clause" back in those days! But what's next? Higher gas, food prices, taxes, cuts in Medicare and higher cost of medical insurance premiums? Yup! We're all in big trouble with big government spending! Where will it all stop? Big Government spending has to stop and soon for all our sakes! Edited February 4, 2011 by Fil/AmArt

[No name]

It isn't a "freeze."There is no COLA if inflation is below 2%. It is a cost of living adjustment. The law was passed during or right after high inflationary times because before that, there was no increase without congressional action. This was put in place to make the adjustments automatic based on the rate of inflation.Still, I'd like to see the 2% exclusion removed.

[Mugs]

Here is one new Tax law that could affect some of us with foreign assets. If I am reading this correctly and look at the term Assets, then that would include a home, condo, land, bank accounts etc, am I correct? I already report income from overseas bank accounts but having to report property may be a little over the top IMO. If I am correct then thank you US govt for making mine and others lives even more complicated.

• Foreign Account Reporting. On March 18, 2010, President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act into law. The new law imposes additional reporting and disclosure requirements on your income tax return for U.S. taxpayers with any interest in certain foreign assets worth more than $50,000. This doesn't replace the existing FBAR (Report of Foreign Bank and Financial Accounts) requirements; those still apply.

Read the others HERE

any updates on this?