Change to tax code for Earned Income Credit (EIC)


1. THE REVISED INTERNAL REVENUE SERVICE (IRS) RULES, CONTAINED IN PUBLIC LAW 107-16 SECTION 303(B), NO LONGER REQUIRE THE REPORTING OF NON-TAXABLE EARNED INCOME, BEGINNING WITH 2002. BLOCK 12 OF THE 2002 W2 NO LONGER WILL CONTAIN THIS INFORMATION. IN ADDITION, BAH, CZTE, AND BAS ARE NO LONGER CONSIDERED WHEN COMPUTING EARNED INCOME CREDIT.

2. THE W2S WILL STILL BE FEDERAL EXPRESSED TO THE MEMBER'S UNIT FOR DISTRIBUTION VIA BITS. IN ADDITION, BEGINNING WITH TAX SEASON 2002, MEMBERS WILL BE ABLE TO ACCESS THEIR INITIAL W2 AND/OR CORRECTED W2S (W2-C) VIA MYPAY (FORMERLY CALLED E/MSS).

3. DJMS-AC WILL CREATE THE W2 FILE FOR TAX YEAR 2002 ON 09 JANUARY 2003. THE TAPE WILL BE DELIVERED TO THE CONTRACTOR ON 17 JANUARY 2003. THE CONTRACTOR WILL MAIL THEM, VIA FEDERAL EXPRESS MAIL, TO THE ADDRESSES YOU PROVIDED IN THE OCT/NOV TIMEFRAME.

4. EFFECTIVE ON OR ABOUT 27 JANUARY 2003, MEMBERS WILL BE ABLE TO VIEW AND PRINT THE 2002 W2 FROM THE MYPAY ACCOUNT. MEMBERS WILL ALSO BE ABLE TO VIEW AND PRINT UP TO FOUR PRIOR YEARS OF THEIR W2/W2-C TAX STATEMENTS ON MYPAY IN THE PROPER IRS FORMAT. THE W2/W2-C VIEW AND PRINT OPTION WILL BE AVAILABLE ON THE MYPAY

INTERNET SITE AT HTTPS://EMSS.DFAS.MIL/.

A. THE MEMBER WILL SELECT OPTION 3 (PLEASE SELECT AN ACCOUNT) ON THE MYPAY HOME PAGE. THIS OPTION IS LOCATED UNDER "SHORTCUT TO YOUR ACCOUNT". AFTER THE TYPE OF ACCOUNT IS SELECTED, A BOX WILL OPEN UP DIRECTLY ON THE RIGHT HAND SIDE OF THE SCREEN. IN THIS BOX THE MEMBER WILL SELECT TAXES. AFTER THIS OPTION IS SELECTED, ANOTHER BOX WILL OPEN UP AND MEMBER WILL SCROLL DOWN AND SELECT W2.

B. DISPLAY OF W-2/W2-C. AFTER THE MEMBER SELECTS THE W2 OPTION AND IF THERE IS A CURRENT TAX YEAR W2 ON FILE IN THE FIVE YEAR TAX HISTORY SYSTEM (5YTHS), MYPAY WILL DISPLAY A COPY OF THE W2. PRINT INSTRUCTIONS WILL BE DISPLAYED AT THE BOTTOM OF THE SCREEN. ON THE INITIAL W2 SCREEN, MYPAY WILL DISPLAY RADIO BUTTONS LABELED W2 COPY 2, W2 COPY B AND COPY C FRONT, W2 COPY B AND COPY C BACK AND TEXT VERSION. THE MEMBERS WILL USE THESE BUTTONS TO SELECT WHICH OPTION THEY WANT TO VIEW OR PRINT. MYPAY WILL DISPLAY THE W2-C INFORMATION THAT IS TRANSMITTED FROM THE 5YTHS. WHEN THE MEMBER HAS W2-CS WITHIN A TAX YEAR, MYPAY WILL DISPLAY THE DATE OF EACH W2-C IN THE ORDER THAT THEY ARE RECEIVED FROM THE 5YTHS. THE MESSAGE DISPLAYED WILL BE AS FOLLOWS: "W2-C AS OF XXXXXXXX". THE XXXXXXXX WILL CONTAIN THE MMDDYYYY OF THE W2-C. THE MEMBER WILL USE THE DROP DOWN BOX TO SELECT WHICH W2-C THEY WANT TO VIEW OR PRINT. IF THE MEMBER DOES NOT HAVE A W2-C WITHIN A TAX YEAR, MYPAY WILL NOT DISPLAY A W2- C OPTION FOR THE MEMBER.

C. IF THE NUMBER OF STATE TAX ENTRIES ON A W2 EXCEEDS THE AVAILABLE TWO ENTRIES, MYPAY WILL DISPLAY ADDITIONAL W2S TO DISPLAY THE ADDITIONAL STATE TAX ENTRIES. IF THE NUMBER OF STATE TAX ENTRIES ON A W2-C EXCEEDS THE AVAILABLE ONE ENTRY, MYPAY WILL DISPLAY ADDITIONAL W2-CS TO DISPLAY THE ADDITIONAL STATE TAX ENTRIES. THE MAXIMUM STATE TAX ENTRIES FOR DJMS IS FIVE. MYPAY SCREEN MESSAGES:

(1) IF THERE IS NO W2 OR W2-C TAX INFORMATION FOUND IN DJMS FOR THE MEMBER'S SSN, MYPAY WILL DISPLAY THE FOLLOWING MESSAGE: "W2/W2-C TAX RECORD NOT FOUND FOR SSN AND YEAR. PLEASE CONTACT YOUR LOCAL PAY OFFICE".

(2) WHEN MYPAY MAKES THE CALL TO DJMS AND THE 5YTHS IS NOT AVAILABLE, MYPAY WILL DISPLAY THE FOLLOWING MESSAGE: "THE FILE IS NOT CURRENTLY AVAILABLE. PLEASE TRY AGAIN LATER".

(3) WHEN MYPAY MAKES THE CALL TO DJMS AND AN ERROR CONDITION EXISTS THAT IS NOT RELATED TO THE TWO CONDITIONS DISCUSSED ABOVE, MYPAY WILL DISPLAY THE FOLLOWING MESSAGE: "YOUR PAY SYSTEM IS NOT RESPONDING. PLEASE TRY AGAIN LATER".

5. MEMBERS MAY ALSO CONTACT MYPAY CUSTOMER SUPPORT FOR ASSISTANCE AT 1-800-390-2348, MONDAY THROUGH FRIDAY BETWEEN THE HOURS OF 0700 AND 1930 EASTERN TIME.

6. THE FIVE YEAR TAX HISTORY SYSTEM (5YTHS) WAS TAKEN OFFLINE ON 20 DECEMBER 2002, IN PREPARATION FOR W2 FILE CREATION, ANNUAL UPDATING, AND MAINTENANCE. ON OR ABOUT 27 JANUARY 2003, FINANCE OFFICES WILL BE ABLE TO REQUEST REISSUED W2S FOR INDIVIDUAL MEMBERS FOR TAX YEARS 1998 THROUGH 2002, BY ACCESSING THE VERB "JLAA". FOR MEMBERS WHO HAVE MYPAY ACCESS, STRONGLY URGE MEMBERS TO PRINT THEIR W2 FROM MYPAY IAW INSTRUCTIONS LISTED IN PARA 4 ABOVE. REQUESTS FOR REISSUED W2S WILL BE PROCESSED IN THE UPDATE IN WHICH THEY ARE RECEIVED AND MAILED FROM DFAS DENVER LOCATION. EXAMPLE: IF THE REQUEST IS SUBMITTED ON TUESDAY AND A DJMS UPDATE IS RUN TUESDAY NIGHT, THE REISSUE FILE WILL BE PRODUCED AND DELIVERED TO THE DEFENSE AUTOMATED PRINTING SERVICE (DAPS) FOR PRINTING THAT NIGHT. MAILING IS ACCOMPLISHED THE NEXT BUSINESS DAY. HOWEVER, IF THE REQUEST IS SUBMITTED ON SATURDAY OR SUNDAY AND THE NEXT DJMS UPDATE IS NOT SCHEDULED UNTIL THE FOLLOWING MONDAY, THE REQUEST WILL NOT BE PROCESSED UNTIL MONDAY NIGHT'S UPDATE WITH THE FILE BEING DELIVERED TO DAPS MONDAY NIGHT AND MAILED BY THE FOLLOWING DAY, TUESDAY. THE LOCAL REISSUE OPTION WILL BE AVAILABLE AT THE SAME TIME. ORIGINAL W-2-CS WILL PRINT EACH MONDAY AND THURSDAY FOR GRADES THROUGH O-6 AND MAIL THE NEXT DAY. W-2-CS FOR GRADES O-7 THROUGH O-10 PRINT ON TUESDAY AND MAIL THE FOLLOWING DAY.

7. 2003 FEDERAL TAX RATES HAVE BEEN UPDATED IN DJMS TABLES 072, 073, 074 AND 094. ATTACHMENT 14A UPDATE IS FORTHCOMING.

8. FINALLY, BONUS PAYMENTS RECEIVED BY THE MEMBER'S FINANCIAL INSTITUTION ON OR BEFORE 31 DECEMBER 2002, SHOULD HAVE THAT MONEY CREDITED TO 2002 WAGES AND THE TAXES WITHHELD CREDITED TO 2002 WITHHOLDINGS. PLEASE ENSURE YOU BUILD A CMS CASE SO WE CAN GET A W- 2-C ISSUED ON EACH OF THEM. BE SURE TO VERIFY THAT THE DEPOSIT ACTUALLY WOULD HAVE GOTTEN TO THE MEMBER'S ACCOUNT BY 31 DECEMBER BEFORE YOU BUILD THE CMS CASE AND REFER IT TO DFAS-AC. BONUSES THAT WERE NOT RECEIVED UNTIL 2 JAN 2003 OR LATER CANNOT HAVE THE WAGES OR WITHHOLDINGS MOVED BACK TO 2002.

9. THIS MESSAGE WAS COORDINATED WITH AFAFO. BASES SHOULD CONTACT MAJCOMS FOR ASSISTANCE. MAJCOMS MAY CONTACT DFAS-PMJEP/DE.//





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Page added on: 17 June 2003