Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Hm, I have not heard about this, but let's haul out Dobbin again. Suppose I am a career TSgt and am paid enough only to feed my family gruel, and have the choice of living on base in roach-infested quarters, or off base in a rat-infested apartment. In order to make ends meet, I buy an Amway distributorship and say goodbye to the rats and roaches. My residence is surely elsewhere, because the Air Force transfers me every two years.

Is the statement that my AF income is not taxed by the state, but the Amway income is, and as if it were on top of the military income (possibly pushing me into a higher bracket)?

Frankly, this sounds very reasonable to me. The Amway income is earned in the state and will be taxed no matter where the official residence is. As to counting or not counting the military income, this seems to me to be like counting Social Security for various purposes. Just because it is not taxed, does not mean it was not earned.

This is quite apart from the issue of whether the military are paid enough.
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.