Saturday, February 22, 2020

Incurring a debt for a government job

When I was active-duty in the Army, I didn't have to pay for my family to move. No matter whether it was to Texas, Virginia, or Korea, we were reimbursed for the full cost of moving to wherever the Army told us to go.

Because civilians are entitled to the same "permanent change of station" (PCS) benefits, I thought moving to Japan would be the same. Not so.

Public Law 115-97, ironically titled the "Tax Cuts and Jobs Act of 2017," made reimbursement for the cost of moving overseas taxable.

So instead of the Army paying me back for the $120 I spent for the shuttle bus from Narita Airport to Camp Zama, I instead got a letter saying I owe the government over $550.

The tickets for my family of four were about $2500. The $550 that I owe comes from the 30 percent withholding (22% FITW, 6.5% FICA, and 1.5% Medicare), minus the $120 bus tickets and $80 for per diem.

So for taking a government job in Japan, not only do I *not* get reimbursed for my expenses, but I have now incurred a debt to the government.

The finance department downstairs said I'll get a letter in the mail with directions on how to pay.

2 comments:

pppmntgrl said...

I too have incurred debt while working for the government. I found your blog while researching personal narratives for the FSOT. Also moving to Japan next year, so am enjoying catching up on your posts. Sorry for the loss of you brother. Losing someone so close feels impossible to deal with.

- said...

It got worse. This post was just about the flights to Japan. I ended up having to pay $1700 because of our household good shipment. It cost a little over $5000 to ship everything, and they charge you ~30% of that (22% tax withholding, 6.2% Social Security, and 1.45% Medicare). You can have it deducted from your paychecks over time, but it's still irritating.

Good luck on your move (although by this point, you're probably already here.)

And thank you for the note about my brother.