In case you missed the write up about the 2011 Tax Changes in the Defense Finance and Accounting Service Retired & Annuitant Newsletter, we’ve added it to our newsletter for your convenience. Military retired and annuity pay will be affected by recent changes to the tax law, tax tables and the expiration of other legislation. This means that there will be a change in Federal Income Tax withholding which will affect your net pay.
The amount of the change will depend on several factors, including your income level and W-4 elections. Most retirees and annuitants will see a decrease in their net pay, while a smaller number may see an increase. These changes will be seen in military retirees and annuitants March 1 payments. An account statement documenting your new pay is available on the mypaywebsite.
You may want to review your pay statement to see how these changes have affected you. If you have questions about the changes, you should contact your financial advisor or tax consultant for more details. Remember that you can also update your W-4 elections using myPay »