need help: taxes, loans, and bills while at OCS

[sonicboom]

Two questions. I'd really appreciate some on these. The more detailed your answers the better. I have a little less than 2 weeks to get all this stuff squared away!

1. TAXES
How have officer candidates managed to pay their taxes in the past? I'll be at OCS Feb - April and won't even be around to receive my W-2's. Can we apply for some sort of deferment? Will we have time to manage our finances while at OCS. As far as the IRS is concerned, life goes on, OCS or not. What have you guys done that worked?

2. SCHOOL LOANS/ CREDIT CARD BILLS
Do we begin receiving normal paychecks via direct deposit to our banks while at OCS, or do we receive a lump sum at graduation? I know we receive E-5 pay and that our bill for everything at OCS is kept like a bar tab until we are commissioned, so I'm not worried about paying for uniform, etc. but I have school loans of about $300 a month and credit card bills of $200 a month that I need to pay right now. I am flat broke and just want make sure that there will be money in my account to pay these obligations.

 

[Slammer2]

Can you file for an extension for your taxes online? I did this a few years back when I was waiting on info from a previous employer. I ended up finishing up everything and getting it all turned in about 2 months after tax day once I got all my info back. But I think I would have had up to 6 months for the extension.

 

[Slammer2]

...SCHOOL LOANS/ CREDIT CARD BILLS
Do we begin receiving normal paychecks via direct deposit to our banks while at OCS, or do we receive a lump sum at graduation? I know we receive E-5 pay and that our bill for everything at OCS is kept like a bar tab until we are commissioned, so I'm not worried about paying for uniform, etc. but I have school loans of about $300 a month and credit card bills of $200 a month that I need to pay right now. I am flat broke and just want make sure that there will be money in my account to pay these obligations.

I went to Marine Corps OCS so it may be different but I think they all pay you the same. I signed up for direct deposit. We got paid twice a month as we should have. Problem was, direct deposit never kicked in. So I received hard checks every two weeks. This made it a pain in the ass. Especially with the bank that I had not having any branches in the state I was in.

As far as making payments goes, set up auto pay with all your bills. My recurring bills that I had couldnt be set up with auto pay. So I made a poor-man's auto pay. I wrote out checks for my bills and put them in envelopes for every month. I paper clipped the envelopes for each month and put a post-it note on the stack designating it the june, july, and august pile. First of every month I had my mom throw the thing in the mailbox. Then, your only burden is making sure that either your checks are being deposited into the account or that you can figure out how to do it manually.

Word of caution:

Make sure that you label it CORRECTLY and that you have sufficient funds available. You dont want to be overdrafting your account because of a timing error. Also, passing bad checks (even though you didnt "mean to") isnt good for an officer-to-be

 

[Morgan81]

I'm not sure about the taxes, but you should start to get paid bi-monthly immediately. I know it got screwed up for some people, but it is supposed to start right away. I suggest you use auto bill pay or something like that you bank offers to pay all of your bills. If your bank doesn't offer it, sign up for USAA. In fact, do that, apply for the career starter loan and keep that in your checking account if you are worried about monthly charges while at OCS... just make sure you commission.

 

[Slammer2]

...In fact, do that, apply for the career starter loan and keep that in your checking account if you are worried about monthly charges while at OCS... just make sure you commission.

Give it a shot. But get a move on because it sounds like you dont have much time left. Also, your recruiter needs to write you a letter stating a few pieces of info and including your commission date. Before this thread turns into a USAA loan thread:

http://www.airwarriors.com/forum/showthread.php?t=14294

read through that.

Also, if they dont approve you for the loan, before you hang up and go drown your sorrows, ask them if you can take a smaller amount. You might get approved.


Only other thing that I just thought of, is see if you can open a checking account with a bank that has a branch by OCS that you would be able to access. That way, in the next 2 weeks you get a stack of checks and you'll have a bank right there that you can physically drop the checks into.

 

[Ric Hard]

First you need to file an extension for your taxes. If your not making that much money then the IRS will grant it no questions asked.

Second, your first OCS check will be a hard check. After that they should be deposited directly into your checking account.

Last, go ahead and apply for the USAA officer loan. They give you three months to make your first payment so don't worry about making payments while in OCS. Just make sure you make it through OCS.

Good Luck.

 

[Flying Low]

Here is a link that explains how to get an extension.

http://www.irs.gov/formspubs/article/0,,id=98155,00.html

 

[sonicboom]

Thanks, I'll call the IRS but I know Monday is a national holiday and I'm worried that because of the inauguration they might be closed Tuesday as well. Hmmmm..... As long as I got those biweekly checks coming in I'll be good on funds, so I don't think the bill paying will a problem but taxes might be.

 

[HeyJoe]

Thanks, I'll call the IRS but I know Monday is a national holiday and I'm worried that because of the inauguration they might be closed Tuesday as well. Hmmmm..... As long as I got those biweekly checks coming in I'll be good on funds, so I don't think the bill paying will a problem but taxes might be.

Their website is open 24/7. Go there and download what you need. You can file for an extension anytime even just before the deadline. You can even file afterwards, but you'll owe penalty and interest on any taxes owed.

 

[sonicboom]

awesome good gouge,. thanks:icon_smil

 

[sonicboom]

damnit, how come every time i try to insert an innocuous smiley face it gives me a devil smiley?

 

[BackOrdered]

FYI: Once you finish OCS, you can get student loans deferred from the time you started OCS to after OCS regardless of whether payments started or not while you were gone. You just need proof of time in service during the payment periods you were charged (IE: your orders).