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Ohio Civil War General William Tecumseh Sherman said “War is hell.” That is true not only for those who serve but also for their families. Serving one's country can cause financial upheaval. As the U.S. Government Accountability Office tells us:
- 40% of all and 55% of self-employed reservists lost income while deployed.
- 50% of reservists had a drop in monthly income between $500 and $2,000, and 23% had a monthly drop of more than $2,000.
- Reservists who are professionals, such as doctors, lawyers, or accountants can lose business or even their entire practice.
Fortunately, help is available.
The Servicemembers Civil Relief Act (SCRA)
The updated Servicemember's Civil Relief Act (SCRA) of 2003 governs legal protections for members of the U.S. Military. (National Guard members recalled for state duty are also covered by this law in some circumstances.) Its protections include:
- Service members and their families are protected from eviction for three months due to nonpayment of rent (up to $2,720.95 monthly rent) while on active duty.
- Service members have the right to terminate a lease if they receive permanent change-of-station orders or are deployed to a new location for 90 days or more.
- The interest on credit obligations established prior to active duty is limited to 6% both during the period of active duty and thereafter – any portion above 6% is “permanently forgiven.”
- Service members can seek temporary stays of civil proceedings such as divorce, bankruptcy, or foreclosure if “military requirements” affect their ability to appear.
Visit http://www.uscg.mil/legal/la/topics/sscra/about_the_sscra.htm to learn more.
Military Lending Act
The Military Lending Act of 2007 covers payday loans, vehicle title loans, and tax refund anticipation loans entered into after joining the military. Under the new law:
- Loan products may not have a military annual percentage rate above 36%.
- These loans may not be automatically refinanced by the lender.
To learn more, see http://www.militarymoney.com/lending_act/PFM_brochure.pdf
Tax Breaks and Assistance
Other tax breaks and assistance are available to military personnel, including:
- Active duty military personnel are eligible for an “interest-free extension” to pay their federal income taxes because service in Iraq , Afghanistan and other locations may have seriously impaired their ability to pay or file a return. To find out more, see www.irs.gov .
- State of Ohio Taxes – As of January 1, 2007, an Ohio resident service member can deduct military pay from their state tax bill.
- Property Taxes – The Active Service Extension Act entitles all active-duty military to take additional time to pay their real estate taxes without penalty or interest.
- The Ohio Society of CPAs provides tax preparation help and financial planning resources to service personnel and their families. See www.ohioscpa.com
Utility Assistance
The Public Utilities Commission of Ohio offers Ohio service members the Patriot Plan, which offers protections and benefits to active-duty military personnel and their families. For any military reservist or National Guardsman deployed on active duty, their utility service cannot be disconnected for nonpayment of utility bills and they must be given extra time to pay arrearages upon release from active duty. This program does not apply to career active-duty military personnel. See www.puco.ohio.gov
Legal Assistance
The Ohio Attorney General's office provides free legal assistance to Ohio service members who have been called to active duty. The Patriot Program is a “pro bono program that provides volunteer lawyers and special counsel from the Ohio Attorney General's Office to assist military personnel and their families with various legal issues.” See www.ag.state.oh.us/citizen/military_veterans/ag_resources.asp
Emergency Assistance
The American Red Cross Armed Forces Emergency Services (AFES) provides support to service members through military aid societies. To find out more, see www.ohio.redcross.org
Military Pension Ohio Tax Exemption
Military pensions are now exempt from state taxes for Ohio residents under a new law effective in 2008. See www.dfas.mil . |
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Veterans and Military
