RAAUZYUW RUDIDFB1700 2441200-UUUU--RHMCSUU. ZNR UUUUU R 011200Z SEP 09 ZYB FM DFAS CLEVELAND OH //JFLF// TO AIG 4676// AIG 4678// BT UNCLAS //N07220// MSGID/GENADMIN/DFAS-CL CODE JFLF// SUBJ/TAXABLE TSP CONTRIBUTIONS FOR THE STATES OF PENNSYLVANIA AND NEW JERSEY// MILITARY PAY ADVISORY 30/09// REF/A/DOC/DODFMR VOL 7A// REF/B/DOC/NAVY DJMS PROCEDURES TRAINING GUIDE (PTG)// NARR/REF A IS THE DODFMR VOL. 7A, CHAPTER 44, PARA. 440106. REF B IS THE PTG, PART 7, CHAPTER 1, SECTION F, PARA. 70168// POC/CHERYL FISHER/SYSTEMS LIAISON AND PROCEDURES/DFAS-CL CODE JFLF/ COM (216) 522-5817/DSN 580-5817// RMKS/1. THE PURPOSE OF THIS MESSAGE IS TO ALERT NAVY MEMBERS DESIGNATING A LEGAL RESIDENCE IN THE STATE OF PENNSYLVANIA OR NEW JERSEY THAT DEFERRED THRIFT SAVINGS PLAN (TSP) CONTRIBUTIONS ARE CONSIDERED A PART OF THE MEMBER'S GROSS TAXABLE INCOME AND MUST BE INCLUDED WHEN FILING STATE INCOME TAX ANNUALLY. 2. THE DJMS SYSTEM DOES NOT INCLUDE DEFERRED TSP CONTRIBUTIONS FOR PENNSYLVANIA AND NEW JERSEY IN BOX 16 (STATE WAGES, TIPS, ETC.) ON FORM W-2 (WAGE AND TAX STATEMENT). NAVY MEMBERS MUST INCLUDE THE TSP DEFERRED AMOUNT REFLECTED IN BOX 12 ON FORM W-2 AS PART OF THEIR TOTAL TAXABLE INCOME. FOR EXAMPLE, IF THE AMOUNT IN BOX 16 IS $18,876.24 AND THE TSP DEFERRED AMOUNT IN BOX 12 IS $514.99, THEN TOTAL STATE TAXABLE INCOME EQUALS $19,391.23. 3. AS DIRECTED IN THE PTG, PARAGRAPH 70168; "MILITARY MEMBERS ARE RESPONSIBLE FOR FILING A STATE INCOME TAX RETURN ANNUALLY, REGARDLESS OF WHERE STATIONED, WHETHER CLAIMING STATE TAX EXEMPTION, OR NO TAXES WERE WITHHELD. MEMBERS SHOULD BE ADVISED TO CONTACT THEIR LEGAL OFFICE OR STATE TAXING AUTHORITY FOR QUESTIONS CONCERNING STATE TAX WITHHOLDING, TAX LIABILITY OR FILING ISSUES." COMMANDS SHOULD INSURE THAT MEMBERS ARE AWARE OF SPECIFIC STATE FILING REQUIREMENTS WHEN SEEKING ASSISTANCE DURING THE TAX SEASON.// BT #1700 NNNN