After the TSP, I invest my money in Betterment and Vanguard. I track all of my investments with Personal Capital. I also wrote a short, 2 hour book summarizing this site. You can buy it here.
I received the following email from DFAS (Defense Finance Accounting Service) regarding Combat Zone Tax Exclusion (CZTE) for servicemembers stationed in Turkey:
Effective September 19, 2016, unless otherwise specified, all military personnel serving in Turkey east of 33.51 degrees East Longitude who are in direct support of military operations in the Arabian Peninsula Combat Zone and who are eligible to receive imminent danger pay or hostile fire pay are eligible for combat zone tax benefits.
If you served in this area, your taxes will be adjusted, and if applicable, you will receive a 2016 corrected W-2 form (W-2c) and/or a refund of applicable 2017 taxes that were already withheld. Additionally, deferred TSP contributions will be re-categorized as exempt. If you do not receive a W-2C and believe you should have, please contact your finance office.
Please see your finance office for further information.
This is great news for any troops TDY, deployed, or stationed in Turkey. Affected areas should include Diyarbakir and Incirlik Air Base. I have not seen any reimbursement or a corrected W-2 (W-2C) but I should be receiving reimbursement for one month this year.
See below for a memorandum that came out recently authorizing the CZTE pay for Turkey:
Here’s a text version of the applicable information:
SUBJECT: Combat Zone Tax Relief for Personnel in Direct Support of the Arabian Peninsula Combat Zone Established by Executive Order 12744 – Turkey
Pursuant to Treasury Regulation (26 Code of Federal Regulations) section 1.112-1 and Revenue Ruling 70-621, 1970-2 C.B. 17, I certify that unless otherwise specified, all military personnel serving in Turkey east of 33.51 degrees East Longitude and who are eligible to receive imminent danger pay or hostile fire pay are eligbile for all combat zone related tax benefits due to their service in direct support of militar yoperation sin the Arabian Peninsula Combat Zone, as designated by Executive Order 12744.
The effective date of this direct support certification for locations in Turkey is September 19, 2016. Unless otherwise terminated or extended earlier, this designation will automatically terminate five years from the date of this memorandum.
Has anyone been able to open an SDP account while stationed in Turkey? Also, here are a few ways to save money while deployed. And here’s some ideas on how to make your deployed the most financial beneficial month, six months, or year+ of your life. Also, going forward, if you are in Turkey getting CZTE pay, make sure you are taking advantage of making tax free contributions to your Roth TSP and Roth IRAs.
Let me know if you have any issues with this process or if you get your W-2C or refund in the comments.
2 Websites I Use to Achieve Financial Independence Faster
I have investment accounts all over the place. To keep track of all of them in one place I use Personal Capital. It combines all of my accounts, shows me where I may be overpaying in fees, and provides beautiful charts showing my overall asset allocation and performance.
I use Personal Capital to track my Roth and Traditional TSP, Vanguard IRAs, banking accounts, SDP, and my Betterment taxable account, all in one place. It's free, secure and presents me with a one-stop dashboard so I can see all my money on one site.
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If you're not a DIY investor or are just getting started with investing, then you definitely need to check out Betterment. It's what I recommend to my family and friends who aren't strong investors or don't care to learn about asset allocations, diversification, or rebalancing.