Pay Deductions Advance BAH Advance BAH is requested on AF Form 1039. Advance BAH is intended to help defray the costs of moving into a new residence. AF Form 1039 can only be signed by the unit commander. A copy of your lease/rental agreement is required when applying for your advance BAH. Advance Pay Advance Basic Pay is requested on DD Form 2560, IAW DFAS-DEM 177-373, Vol. II, Chapter Six. PCS advance payments provide a member with funds to meet extraordinary expenses incident to a government-ordered relocation. The only person who can authorize advance pay is the Unit Commander. Advance Pay is intended to assist with the out-of-pocket expenses that exceed or precede reimbursements incurred in a duty location change, and are expenses not typical of day-to-day military living. Armed Forces Retirement Home The maintenance expenses of the Armed Forces Retirement home are paid on all regular enlisted personnel and regular warrant officers of the Air Force. The present deduction for AFRH is $.50 per month. Article 139 An Air Force member becoming indebted to a non-government activity may have collection action per AFM 112-1, chapter 5. Bankruptcy There are two types of bankruptcy a member may file with the court. The first one is called straight bankruptcy, the other one is called wage earner plan. Straight Bankruptcy: is filed under chapters I through VII of the Bankruptcy Act. Debts listed may not be collected until the court has ruled on the petition. The debts can be either secured or unsecured. However, debts on the members MMPA are considered priority unsecured. Wage Earner Plan: is filed under chapter XIII of the Bankruptcy Act. The member agrees to pay all of his or her debts, but the accumulated monthly payments have placed the member in financial hardship. The member petitions the court for a repayment of the debts at a lower rate. Federal Tax Levies DFAS-DE/FJPG: receives a notice of levy (NOL) from the Internal Revenue Service (IRS) and in turn, sends a message to the members servicing FSO. Upon receipt of the NOL, the FSO will contact the member to whom the levy applies and explain how the levy will be applied to the members MMPA. Debts Debts are overpayment of entitlements, indebtedness for Tuition-Assistance, Travel, Housing, Non-Appropriated Funds. Debts may be collected voluntarily or involuntarily and must be collected in accordance with due process provisions. Deductions A deduction is any subtraction or exclusion from gross pay due a member. Included are those required/authorized by laws, regulations, or legal decisions, such as: Federal Income Tax (FITW), State Income Tax (SITW), Child Support, Social Security, Medicare, Armed Forces Retirement Home, Service Members Group Life Insurance (SGLI), Voluntary Allotments. Deductions from pay must be properly authorized, adequately documented, and paid when due, in the amount authorized. Earned Income Credit Earned Income Credit (EIC) can be paid to members in semi-monthly or monthly increments with a members normal pay, once the member submits a TD Form W-5, Earned Income Credit Advance Payment Certificate, to the local FMO, and he or she is determined eligible. The amount of APEIC is determined by members earned income and whether a members spouse has a TD Form W-5 in effect. A member whose spouse has a TD Form W-5 in effect will only receive partial APEIC benefits while a member whose spouse does not have a TD Form W-5 in effect can receive full APEIC benefits. Federal and State Income Taxes All items of pay are subject to Federal Income Tax Withholding (FITW). The number of exemptions that you claim will affect the amount that is deducted; you can change this number through myPay. Each state has different procedures for State Income Tax Withholding. Various states are exempt from withholding while others are subject to the same amount as FITW, to claim exemption for a certain state you can fill out a DD Form 2558-1. You can change you State of Legal Residence by filling out a DD Form 2558. We recommend you speak with Base Legal to ensure you can legally change you withholding state before doing so. Garnishments A garnishment is a legal summons that is used to involuntarily withhold pay otherwise due a member. One example would be a member court-ordered to pay child support or alimony. This can only be started/stopped/or changed by court order. Montgomery G. I. Bill The Montgomery GI Bill was established as a contributory educational assistance program available to individuals who first entered active duty on or after July 1985. Deductions are $100.00 per month for 12 months. Additional contributions can be in increments of $20.00. Deductions will automatically stop once the total contributions are paid. You can determine how much is left to contribute by looking at the remarks portion of your LES. See the Education Office for more details. Meal Deductions If you are wishing to stop your Meal Deductions, please fill out an AF Form 220 and submit it through your CSS (Orderly Room). Members on a meal card will have meal deductions subtracted from their pay. Current meal deduction rate is $7.95 per day. Members on leave or TDY will be refunded meals deducted for those leave days. Savings Bonds Starting or changing Savings Bonds can be accomplished through myPay, stopping Savings Bonds require submitting a DD Form 2559, and releasing bonds from DFAS Safekeeping can be accomplished by sending off this memo. The purchase of savings bonds can be done through payroll deduction. Several purchase plans are available ranging from $5.00 per month for a $100.00 bond every tenth month to $500.00 per month for a $1,000 bond are available. The purchase price a bond is one-half of the denomination of the bond, e.g., $100.00 bond would cost $50.00. You can obtain much more information on U.S. Savings Bonds at U. S. Savings Bond Online. Service Members Group Life Insurance Effective July 1998, the deduction is $.08 per month for every $1,000 worth of coverage, up to a maximum coverage of $200,000 ($16.00 deduction per month). All members entering active duty must determine the amount of coverage they desire. If the member wishes to change their coverage, they must see the military personnel flight (MPF) customer service section. Social Security and Medicare Withholding The Federal Insurance Contributions Act (FICA) requires the withholding of tax from wages of employees covered by the social security act and the payment of employers tax by federal agencies. Any member appointed to, enlisted in, or inducted into any service is subject to FICA tax. Note: Basic pay is an example of what is subject to FICA withholding. The Thrift Savings Plan (TSP) Starting, Changing, and Stopping your Thrift Savings Plan (TSP) contributions can be accomplished through myPay. The Thrift Savings Plan is a Federal Government-sponsored retirement savings and investment plan. The National Defense Authorization Act for Fiscal Year 2001 extended participation in the TSP, which was originally only for Federal civilian employees, to members of the uniformed services, and members began enrolling on October 9, 2001. The TSP offers the same type of savings and tax benefits that many private corporations offer their employees under so-called "401(k)" plans. The retirement income that you receive from your TSP account will depend on how much you have contributed to your account during your working years and the earnings on those contributions. For more information on the TSP, visit www.tsp.gov. But, it's important to remember the TSP is for long-term retirement savings.