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In Reply to: Re: BAH and BAS posted by Carly on January 27, 2009 at 14:14:03:
: My husband's command sent a letter home stating that people have been doing the boomer deduction incorrectly and that the irs requires that you include bah and bas as reimbursed expenses and they they will offset the deduction. Also, the place on base that does taxes also stated this. I am so confused.
--Reply--
OK, I spoke with the Tax people on base. You are correct. The IRS has changed the way they do business with regard to the FBM (Boomer) deduction. Originally, we deducted the cost of housing and food from our taxes because those items are tax deductable when you have to maintain a second home, away from your tax home. But now, the IRS has discovered that the money we were removing from our taxes was never taxed to begin with. The navy's BAS and BAH is non-taxable. In light of this new revelation, the only items the navy base deducts is your miles to and from the office during off-crew. Wow! Big Change!