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DOD Tax Free?

Posted: Wed Feb 27, 2013 4:06 am
by teachabroad
Does anyone know if DOD teacher salaries are tax free?

Posted: Wed Feb 27, 2013 4:50 am
by wntriscoming
Yes, you pay U.S. taxes, as clearly stated on their website:

http://www.dodea.edu/Offices/HR/employe ... /index.cfm

"Deductions from your Biweekly Pay: There are two type of deductions: discretionary and non-discretionary. Discretionary deductions are those deductions that only you may authorize, which may include life and health insurance, thrift savings, and plan contributions. Non-discretionary deductions will occur automatically, and include withholding of federal, state, and local income taxes, FICA tax and retirement plan contributions."

Reply

Posted: Fri Mar 01, 2013 6:15 am
by PsyGuy
No, you pay taxes just like any other USA job.

DOD Tax Free?

Posted: Fri Mar 01, 2013 7:46 am
by teachabroad
Then where are these large salary figures of 100K+ coming from? Say the salary is 50K... COLA, etc. can bring it up how much?

Thanks

Comment

Posted: Fri Mar 01, 2013 8:18 am
by PsyGuy
LQA, COLA, etc., all in compensation hits around 100K. Our starting salary on step 1 with just a BA is 40K. The average DoDDS teacher is over 50K and when you consider housing for a family in Japan and Europe yeah, compensation is around 100K.

Salary+Benefits-Taxes=Total Package

Posted: Thu Mar 07, 2013 7:35 am
by euxpat
While the pay is lower due to taxation, there are numerous benefits like:
-healthcare for life once you get enuf years in (currently 72% paid by govt)
-social security taxes matched
-discount food at the commissary
-post allowances that vary by exchange rate and cost of living location
-kids on health insurance till 26
-kids get reunification flights while in college
-you can put in additional retirement amounts thru TSP, up to 23k after 55
-free housing package gives you an opportunity to afford to live in western Europe AND save money
-the ease of living and traveling in western Europe

International schools have similar befefits, sometimes including tax free salaries.

DOD School Pensions

Posted: Wed Mar 13, 2013 2:47 am
by teachabroad
Does anyone know if my pension contributions from prior military service would be applicable as a DOD teacher?

Probably

Posted: Wed Mar 13, 2013 3:55 am
by euxpat
Your time in the service will count towards your total retirement years and the retirement money should also count.