washingtonscene
VA Care to
people making more than $75,000 a year
($150,000 for married couples). The House
Expand
bill would eliminate it for those with in-
comes of more than $100,000 ($200,000
More nondisabled will qualify.
for married couples). The Senate bill
would deny any relief to those with in-
comes above $87,500 ($175,000 married).
T
he VA is gearing up to expand The Senate (but not the House) also
opportunities for certain “Pri- proposes a one-time $300 payment
ority 8” (nondisabled, middle- to Social Security annuitants and VA
income) veterans to enroll in VA health disability recipients.
care. Since January 2003, Priority 8 vets MOAA asked the Senate Finance
have been barred from enrolling because Committee staff whether a currently
their income exceeded the VA’s means working disabled veteran would qualify
test threshold. for both the tax reduction and the $300
A new regulation is in the works to payment. They said the intent is to pro-
modify that. It’s expected to take effect in vide a maximum total payment of $500
More Key Bills
June 2009 and will be applied retroactive- (single) or $1,000 (married).
a73 As this column was
ly to all enrollment applications received A working disabled veteran would get
being written, only a lim-
on or after Jan. 1, 2009. the $300 payment fi rst, and also would
ited number of bills had
been introduced. By the
This won’t be a blanket opportunity see the full reduction in the income tax
time you read this, the list
for all Priority 8 veterans to enroll. The withholding from his or her employer. should be much longer.
new rule will authorize enrollment only The rub would come at the end of the
Check out http://capwiz
for those nondisabled veterans whose year, when such people could fi nd them-
.com/moaa/issues/bills for
income exceeds the current means test selves “under-withheld” by $300.
an up-to-date list.
thresholds by 10 percent or less. The In other words, if a veteran gets the
thresholds vary by locality. $300 up front and also qualify for the
It’s estimated that up to 265,000 addi- maximum $500/$1,000 tax withholding,
tional veterans will be able to enroll. he or she will end up having to pay the
$300 back in taxes at the end of the year.
Hill Pushes
So working disabled veterans might want
to ask their employers to increase their
Stimulus
withholding by enough to make up the
$300 difference by the end of the year.
Plan includes tax cuts and
Another key provision would help
military homeowner help.
military and federal civilian homeowners
who suffer losses on a primary residence
purchased before July 1, 2006, and who
T
he central feature of the $825 received PCS orders or suffered a wound,
billion economic stimulus pack- injury, or illness while deployed between
age Congress was working on in that date and Sept. 30, 2012.
early January would reduce income tax The wounded, ill, or injured service-
withholding and liability by $500 for member/employee would qualify only if
singles and $1,000 for married couples. the condition were subsequently rated
The reduction would apply only to as at least 30-percent disabling by DoD
those currently employed — not retirees. or the VA and the servicemember was
Both the House and Senate bills reassigned for medical treatment or reha-
would start phasing out this tax relief for bilitation or was medically retired. If the
M A R C H 2 0 0 9 M I L I T A R Y O F F I C E R 3 9
MMar_scene.indd
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