Taxes in the Military

We were able to print off our (or his)W-2 yesterday.

I spent about an hour trying to figure it out. Another hour trying to print out LES's (pay stubs) to compare to, and another 45 minutes or so talking to someone from H&R Block.

I learned a LOT!!

Dustin's income is not federally taxed. Only bonuses.
We still pay Utah State Tax. Not Washington.
BAH(housing), BAS(food), and other allotments are not only not taxed, but also not included in your Income.

Although we are very comfortable living on only Dusitn's income, on paper, we look poor as dirt.

Ofcourse, Dustin could not wait to file our taxes. We downloaded the H&R Block computer program for free from militaryonesource.com. We e-filed for free. Our direct deposit was free.

Our return, we checked it twice! The amount on our check has 5 digits. Way more than we were expecting!

Now to prioritize what we need, separate it from what we want, and have the controll to put all the rest into savings.