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5 Small Credit Card Mistakes That Can Sink Your Credit Score

It’s true that a credit card can be a great financial tool. When used properly, your credit card helps you build a credit history, and quickly establish a good credit score. However, as with so many things in life, there is a downside to credit cards. Because they are such a big part of your credit history, seemingly small mistakes can add up to make a big impact on your credit score.

Be aware of how your credit score is affected by your credit card habits. Here are 5 credit card mistakes that seem small at first, but if made too frequently — or made together — can add up to overwhelm your credit score, sending it lower:

Credit Card Mistakes

These credit card mistakes can sink your credit score

1. Paying Late

Your payment history is the most important aspect of your credit score. This means that if you are late in paying, it will be noticed and affect the credit scoring algorithm. Many credit reports list your payment for each credit card every month for the past three years. One or two late payments in that period of time might be overlooked. However, if it appears that a habit is forming, you could find yourself in trouble.

Tip: Always make your credit card payments on time, every time.

2. Maxed Out Credit Card

When you max out your credit card, it looks as though you have money problems. Not only that, but a maxed out credit card can mean that any sort of a fee triggers you going over your limit — and that comes with its own penalties and credit scoring problems. Try to keep your credit card spending to no more than 25% to 30% of your credit limit. With your credit utilization accounting for the second-biggest chunk of your credit score, this is important.

Tip: Only use a portion of your available credit on each card. You can do this by using more than one card, or increasing your credit limit so normal spending doesn’t bring you close to the card limit.

3. Department Store Credit Cards

The type of credit you carry matters. Major issuers are considered “better” credit card debt than others. This means that the more department store credit cards you have, the worse it looks on your credit report. Don’t apply for these cards just for a discount.

Tip: Limit your credit cards to those from major credit card issuers, banks, and credit unions.

4. A Rash of Credit Card Applications

Applying for a credit card will slightly ding your credit score because it is a hard inquiry. One or two applications probably won’t impact your score too much. However, if you apply for several credit cards all at once, all of those dings start to add up. Combine your rash of credit card applications with a growing balance on your other cards, and applications for department store credit cards, and the red flags begin to weigh on what lenders see as your creditworthiness.

Tip: Limit the number of credit cards you apply for.

5. Closing Credit Card Accounts

At first glance, closing a credit card account or two seems like it’s a good thing — not a mistake. However, closing your accounts can impact your score. First of all, it reduces how much credit you have available, which isn’t always a good thing from a creditor standpoint. Second, it reduces the length of your credit history. Your credit history length includes a consideration for your oldest account, as well as the average length of all your accounts. If you close a credit account, you affect your average. If you do end up closing a credit card account, pick a newer card to close.

Tip: Leave your credit card accounts open, but only use them a few times a year to keep the accounts active.

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Private Military Scholarships

College is expensive. Despite excellent benefits provided by GI Bill 2.0, the cost of attending a top-tier university can shoulder a veteran with considerable debt. But that doesn’t mean you should shelve your plans of attending a university. The citizenry of the United States, private John and Jane Q. Publics’, have come to the rescue. It’s a tradition that dates back to the late 19thcentury – the American public coming to together in order to provide academic support for active-duty and military veterans. Below you’ll find several scholarships that cater specifically to Active-Duty military members and veterans.

Where You Can Find Private Military Scholarships

AMVETS ScholarshipAMVETS. Formed by World War II veterans, American Veterans (AMVETS) – who now hold a congressional charter offer a relatively tasty scholarship. Aimed at veterans who have exhausted government aid and find themselves in financial hardship, the AMVETS scholarships range up to $1,000 per year. Other eligible scholarship applicants include veterans and active duty military members, their children or grandchildren, and the child or grandchild of a deceased veteran. It must be used for undergraduate, graduate, or certificate studies and is awarded for a maximum of fours years.

Pat Tillman Foundation ScholarshipPat Tillman Foundation. Continuing on, the Pat Tillman Foundation offers one of the more dynamic scholarships around. The namesake of NFL player-turned Army Ranger – Patrick Daniel Tillman, the foundation was established following his death in Afghanistan due to friendly fire in 2004. As per their website, the Tillman Military Scholars program “supports our nation’s active and veteran service member and their spouses by removing financial barriers to completing a degree program of choice. Investing nearly $2.2 million in scholastic support, the foundation also covers the cost of study-related fees, including books, housing and even child-care. Beyond question, the Tillman Foundation is an excellent resource for veterans in need. Learn more about eligibility and criteria.

1st Marine Division Association Scholarship1st Marine Division Association. For United States Marines rated by the Veterans Administration as 100% disabled, the 1st Marine Division Association offers scholarships towards completion of a bachelor’s degree. The university of choice must be an accredited four-year college and the maximum award falls in at $1,500. Learn more about the scholarship requirements.

Navy Marine Corps Relief Society ScholarshipNavy and Marine Corps Relief Society. Yet another Marine Corps/Navy-related assistance program can be found at Navy and Marine Corps Relief Society. Providing interest-free loans and grants, the society not only provides for educational support, but also helps with “emergency needs such as: emergency transport; funeral expenses; medical/dental bills; food/rent; disaster relief; child care; vehicle repair; [and] unforeseen family emergencies.”

Under the same umbrella organization, the Society of Sponsors of the United States Navy Centennial Scholarship Program offers significant monetary benefits to “combat wounded or injured veterans who have chosen to serve their country again by entering the teaching profession.” Basic requirements include combat service in either the Navy/Marine Corps during Operation Enduring Freedom, Operation Iraqi Freedom, or Operation New Dawn. A sizable $3,000 per academic year is awarded to select full-time students attending an accredited university. Learn more about the NMCRS education programs, including the United States Navy Centennial Scholarship Program.

Dr. Aurelio M. Caccomo Family Foundation Memorial Scholarship. Finally, we have the Dr. Aurelio M. Caccomo Family Foundation Memorial Scholarship. Awarding “two, $3,000 scholarships per year to veterans who want to improve their job skills by returning to school,” the Caccomo Family Foundation should be of particular interest to veterans who have run through their traditional GI Bill benefits. All applicants must demonstrate financial need and posses a high school diploma or GED. It would behoove would-be applicants to establish expiration of “government sources of educational funding,” thus illustrating the scholarship’s caveat of “financial need.” Learn more about the Dr. Aurelio M. Caccomo scholarship.

Take Advantage of Military Scholarships

Notwithstanding government allotted funds, veterans may find themselves in need of educational support due to our sagging economy. Sadly, the rising costs of college may dissuade active-duty service members and veterans from attending college – but it shouldn’t. Even if the rebooted GI Bill no longer applies to the aforementioned individuals, private citizens and organizations are there to help. Take full advantage of that assistance – you certainly earned it!

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How to Get a Military Discount

Many companies offer military discounts, which is an awesome way to show their appreciation for all military veterans have done for our country. As a veteran, I certainly appreciate the gesture, and I try to thank the company offering the discount whenever it is possible. As well intentioned as the military discounts are, however, they sometimes cause problems because there is no general standard among stores regarding discount eligibility. In this article we will cover some helpful information about military discounts, including how to get them, how to find “hidden” military discounts, what to expect, and what to do if the discount isn’t honored.

How to get a Military Discount

Follow these tips for getting a military discount

Military Discount Eligibility

Let’s start off with the most important topic – who is eligible for a military discount. This is probably the most debated topic I’ve seen regarding military discounts. Unfortunately, there isn’t one standard. The important thing to remember is that stores aren’t required to give military discounts – it’s a privilege, not a right. The stores set the rules, and we as veterans, should honor the standards set by the stores. Let’s take a look at some different groups of people who are commonly offered military discounts at various locations:

  • Active duty military
  • Current Guard / Reserve
  • Retirees
  • Military dependents (anyone with a DoD issued military or dependent ID)
  • Veterans (proof of service may or may not be required)

As you can see, there is a wide range of people in this list. And it doesn’t always make sense. Many stores which offer military discounts do so out of generosity, but sometimes their policies are made without understanding how the military ID card system works (they don’t understand there isn’t a standard for a national veterans ID card). As a result, some military discount policies are misguided.

For example, some stores offer discounts for dependents of active duty service members or retirees, while they don’t offer discounts for veterans who served, but are no longer on active duty and didn’t reach retirement (this group of people represents the largest group of veterans).

I will be the first to say that it doesn’t make sense to give a military discount to someone who never wore the uniform, then deny it to someone who served, but didn’t retire. Yes, spouses and dependents make sacrifices on the home front, but they don’t warrant greater recognition than someone who served in a combat zone, but didn’t remain in the military through retirement. (I am qualified to make this statement as I both both served in a combat zone, and was a military spouse after I separated from the military – my wife served on active duty while I was a civilian).

But here is the kicker: it doesn’t matter what you or I think – we don’t make the rules. The stores make the rules, and as this is an act of generosity on their part, it’s always best to honor their wishes.

Finding Hidden Military Discounts

Many stores publicize military discounts, while others don’t announce them publicly. You will be surprised how often companies will offer you a military discount if you just ask for it. All it takes is a simple question while you are ordering or checking out. Just ask, “do you offer a military discount?” In some cases you will be told no, but sometimes you will be pleasantly surprised. Just ask, and always thank the person if you receive a discount. And if not, no hard feelings. Remember, this is an act of generosity on their part, not a right veterans deserve.

*Bonus tip: Your odds of success increase substantially when asking for a military discount on a military related holiday, such as Memorial Day, Fourth of July, Veterans Day or other national holidays. In fact, many stores don’t offer military discounts, except on these holidays.

Proving Military Service

After determining eligibility, the next most important thing is to be able to prove you served in the military. If you are on active duty, or are a retiree, then this likely isn’t a problem, as you should have a military ID Card. But proving military service can be a lot more difficult for a military veteran who didn’t retire, and isn’t receiving disability from the VA.

Unfortunately, there is no standard for proving military service, outside of carrying around a DD Form 214. And this isn’t always a good idea as it has your Social Security Number and other personal information on it. There are a few ways you can get a veteran ID card, but keep in mind there is no federal standard for veterans ID cards.

Some examples of veteran identification include DD Form 214, VA issued ID card, state driver’s license if it shows proof of military service, locally issued veterans ID cards, VFW or American Legion membership card, and sometimes other cards, depending on your situation. Again, because there is no standard, some stores don’t always accept non-official forms of military ID.

Need proof of service? If you served in the military, but don’t have any records to prove it, you can get a copy of your DD Form 214 or a copy of your service records form the National Archives. Both are free and easy to do, and can help you prove your military service.

What to Do if a Store Doesn’t Honor a Military Discount

As mentioned above, some military discounts are seemingly misguided regarding who is eligible, and who is not. But it isn’t for us to make that judgment. As military discounts are made out of the generosity of the store offering the discount, it’s in our best interest as veterans to accept a discount with humble thanks when it is offered, and be understanding when it is declined.

If you believe you should be eligible for a discount, then politely ask to speak with a manager and explain the situation. But always be sure to fully understand the company’s policies on military discounts before doing so (and keep in mind policies may change at any time, so be sure to be up to date).

One of the biggest complains we have heard is about Home Depot and Lowes discounts. These companies offer military discounts everyday, however, they have changed the eligibility a few times, so the military discounts may only be available to a segment of the military and veteran population. Be sure to review their corporate policies before arguing with management about the discount you are “entitled to.” Here is the Lowe’s corporate policy.

Remember, military discounts are an act of generosity, not a right. It is never worth making a scene over getting a military discount.

Do you have any other tips on asking for or receiving military discounts?

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Post 9-11 GI Bill – Your Ticket to a College Education

Post-9/11 GI Bill

Are you eligible for the Post-9/11 GI Bill?

It’s been called the most significant piece of legislation ever passed by Congress. The “Greatest Generation” – champions of the free world, found release from combat, harnessing post-war anxiety into academic success. And when President Franklin Delano Roosevelt signed into law the Servicemen’s Readjustment Act on June 22, 1944, he guaranteed a myriad of benefits ranging from educational support, job training, loan assistance for homes, farms or businesses and unemployment pay, to veterans of the Second World War. This treatise of veterans’ assistance came to be known as the GI Bill of Rights.

Reconstructed on several occasions in order to meet the needs and challenges of an ever-changing world, the GI Bill can seem like an uncharted battlefield to many service members returning home from far-flung climes.  The Post 9/11 Veterans Educational Assistance Act (also known as GI Bill 2.0) is no different – altruistic, yet extremely convoluted. In order to fully digest GI Bill 2.0, it’s imperative to compare it with its predecessor: the Montgomery GI Bill.

Comparing Post-9/11 GI Bill to the MGIB

In years past, service members enlisting in the military post-1985 were required to pay $1,200 towards their educational benefits. As of August 1, 2011 the Post 9/11 GI Bill came into being – allowing any service member serving 90 days of Active Duty since September 11, 2001, access to assistance – sans payment. Only a few requirements exist for participating veterans: serving a total of 36 months of Active Duty or honorable discharge due to a service related disability.

In a move to tackle current university fees, GI Bill 2.0 no longer pays a flat rate directly to veterans – rather, the VA pays 100% of in-state public school tuition directly to the college. Private university tuition caps in at $17,500 – something unheard of under the Montgomery GI Bill. Also, eligible students can pull stipends for both books and living expenses.  These so-called “living allowances,” can range from $667 to $2,751 per month.

Contingent upon agreement of re-enlistment, currently serving troops with six years of Active Duty have the ability to transfer their educational benefits. They must quality for academic assistance themselves and have a spouse or dependent enrolled in the Defense Eligibility Enrollment Reporting System (DEERS). Whereas the Montgomery GI Bill’s benefit period spanned ten years, GI Bill 2.0 pushes it to fifteen – another great update to aging system.

The Post-9/11 GI Bill also expanded which programs veterans are eligible to use. Some educational programs include traditional college courses, including 2 and 4 year degrees, Master’s programs, vocational/technical training, flight training, national testing, certifications, licensing, and more.

One of the more innovative attributes of GI Bill 2.0 is the “Yellow Ribbon GI Education Enhancement Program.” Totally ignored in previous education bills, the “Yellow Ribbon Program,” seeks to support veterans at the graduate school level. Private and public universities, who choose to participate in the syllabus, must offer scholarships of tuition forgiveness to veterans. Thereupon entering into an agreement with the Veterans Administration, the college will be compensated, dollar-for-dollar, with what they provided – up to the full cost of tuition.

Here is a brief recap of Post-9/11 GI Bill benefits compared to the MGIB:

  • Buy-in Requirement: Post-9/11: None; MGIB: $1,200
  • Who receives payment: Post-9/11: Educational institution receives tuition; MGIB: Veteran receives payment
  • Book stipend and living expenses: Post-9/11: Yes; MGIB: None
  • Expanded educational benefits: Post-9/11: Yes; MGIB: No
  • Are benefits transferable? Post-9/11: Yes, under limited circumstances; MGIB: No
  • Time limit: Post-9/11: 15 years; MGIB: 10 years
  • Yellow Ribbon Program: Post-9/11: Yes; MGIB: No

If you are currently eligible for the Montgomery GI Bill, but served at least 90 days of Active Duty after September 11, 2001, you may be able to transfer your benefits from the MGIB program to the GI Bill 2.0. In some cases, you may be able to add extra time to your GI Bill benefits if you have already used your MGIB benefits, and in limited cases, you can get a MGIB refund if you have exhausted your Post-9/11 GI Bill benefits.

The Serviceman’s Readjustment Act of 1944 has certainly come a long way since its $500 allotments per school year to qualified veterans. Utilizing a broad spectrum of benefits, the Post-9/11 GI Bill tackles contemporary issues facing student veterans. It’s definitely worth exploring if you are eligible. Standby for further information on military education benefits, including private military scholarships, and more. And if you are ready to explore your benefits further, then check out these GI Bill education programs for more information about which degree program might be the best for your career goals.

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How to Place a Security Freeze on Your Credit File

Identity theft can be a devastating and demoralizing problem that has far reaching consequences and can be difficult to repair. Unfortunately, identity theft cases continue to increase. If you have been a victim of identity theft, believe you have been a victim, or want to increase the security of your credit history, then you can place a security freeze on your credit file with something called a credit freeze.

Why Freeze Your Credit?

Place a security freeze on your credit

Place a security freeze on your credit report

A credit freeze is the process of denying access to your credit reports. This is an effective method of blocking identity thieves from opening new lines of credit because once you institute the credit freeze, no one, not even you, can open a new line of credit without jumping through hoops. In fact, lenders and insurers can’t even access your credit history without you giving them explicit permission, which involves sending them a personal identification number which is good for a limited time. Otherwise, no one can access your credit profile until you lift the credit freeze.

As you can see there are some pros and cons to this, which will will explore further. But for now, the main benefit is locking down your credit profile to prevent unauthorized use. The downside, however, is that you need to jump through hoops if you want to open a new line of credit, apply for a loan, or just want to check your credit report.

How to Request a Security Freeze on Your Credit Report

Freezing your credit is actually a simple process. All you need to do is contact the credit bureaus (Equifax, Experian, TransUnion) and request they freeze your credit report. You will need to include your identifying information, including a copy of your photo ID, your SSN, and your address. There may or may not be an associated fee, depending on why you are requesting the credit freeze. If you have been a recent victim of identity theft, or if you have been exposed to a security breach, you should be able to place a security freeze at no charge. Otherwise, there may be a $10 administration fee. After the credit bureau approves your credit freeze, you will receive a PIN which will allow you temporary access to unfreeze your report, if you need to apply for a loan.

When You Should Freeze Your Credit File

The following reasons are a few examples when it may be a good idea to freeze your credit:

  • If you have been, or suspect you have been a victim of identity theft.
  • You have lost your wallet or purse
  • You have been a victim of fraud (stolen checks, forged signatures, etc.)
  • Your information was stolen in a security breach (for example, if your social security number, personal identification, credit card information, or other information was lost or stolen from a third party computer system)
  • You want an added layer of security between your finances and the rest of the world

Unfreezing Your Credit

Once you are ready to lift the security freeze on your credit profile, all you need to do is contact the credit bureaus with the PIN they provided you with. Keep in mind that it may take up to a few days, so you probably wouldn’t be able to apply for a store credit card at the last minute (and that is a good thing, as store credit cards are rarely a good deal!). You may or may not have to pay to lift the credit freeze from your credit profile. If you were not charged to place the initial credit freeze because of an identity theft experience or related security breach, then you probably won’t have to pay to remove the freeze. If you are doing this purely as an added layer of security, you may have to pay a small fee.

What to Look Out For With a Credit Freeze

Keep in mind that this won’t repair or fix your credit score, and it won’t do anything to prevent further use of any lines of credit which have already been created. All a credit freeze does is prevent access to your credit report, which prevents new lines of credit from being opened. If you have been a victim of identity theft, then you should immediately report it to the police and your credit issuers, and immediately close the affected lines of credit to prevent further damage.

Bottom line: A credit freeze is an easy way to secure your credit profile against identity thieves. It is either free, or low cost, and highly effective against allowing new lines of credit from being opened. The only downside is that it can be a hassle to unfreeze your credit report if you need access. but that is a small price to pay for added security and peace of mind.

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Can I Contribute to the TSP When I Leave the Military?

The Thrift Savings Plan is one of the best tools military members have to prepare for retirement. Similar to a civilian 401k plan, the Thrift Savings Plan is an employer sponsored retirement plan which allows participants to save money for retirement directly from their paycheck. The added benefit is the money you contribute isn’t taxed in the year you make the contribution, and it can grow tax free until you reach retirement age and make withdrawals. Because of the many benefits provided by the Thrift Savings Plan, many military members want to continue using it when they leave the service. The good news is you get to take the money and tax benefits with you when you leave the military. But many service members want to know if they can continue making contributions to your military TSP plan after they leave the service. Unfortunately, it isn’t allowed.

You Can No Longer Contribute to the TSP When You Leave the Military

Thrift Savings Plan Contributions

Can You Still Contribute to The TSP?

Once you leave the military, you can no longer make contributions to your military TSP account. You may, however, be able to make contributions to a different Thrift Savings Plan account if you get hired by a government agency which offers it. My wife did this after she separated from the military and later worked as a civil servant. The caveat is that you have to open a new Thrift Savings Plan when you start your civil service job, which means you will have two Thrift Savings Plan accounts. The good news is that civil servants are automatically enrolled in the TSP.

If you work for the government and open a new TSP account, you will have the option of rolling your military TSP into your civil service TSP. This may be a good idea as far as simplifying your book keeping (few accounts is almost always better since it takes less work to manage them). However, you should be aware that doing so may take away one of the biggest benefits of the military TSP – tax exempt contributions.

If you made contributions while in a tax free zone, your contributions would be considered tax-exempt, and you will be able to withdraw those contributions tax free when you reach retirement age. This is a huge benefit many veterans and military members are not aware of. So if you have any tax-exempt contributions to your TSP, I don’t recommend rolling them into a civil service TSP, or other employer sponsored retirement account unless you are able to keep these contributions in a tax-exempt status (which isn’t likely). You may, however, be able to roll your TSP into an IRA and preserve the tax-exempt contributions (the tax-exempt portion goes into a Roth IRA, the other portion goes into a Traditional IRA; get professional help if needed – you want to get this right the first time!).

Other Retirement Plan Options

Just because you won’t be able to make further contributions to your TSP account doesn’t mean you should stop saving for retirement. In fact, it is almost always a good idea to save for retirement. Here are some places you can invest if you plan on saving more for retirement:

Civil Service TSP. The TSP for civil service workers is virtually the same as the plan for military members, however, most civil servants are eligible for employer matching, which is where the government will make contributions to your account for you. The government will give you a small contribution just for participating, then they will match your contributions up to a certain percentage. It is highly recommended to take advantage of this plan as the employer match is essentially free money, and part of your employer benefits.

401k plan or other employer sponsored retirement plan. There are several employer-sponsored retirement plans similar to the Thrift Savings Plan, including 401k plans, 401b plans, and several others. Like the civil service TSP, some companies offer employer matching contributions, which can turbo-charge your retirement savings.

Traditional or Roth IRA. One of the benefits of investing in IRAs is that they are open to anyone who has earned income – even if you are participating in an employer-sponsored retirement plan. It is possible to have multiple retirement accounts, as long as you don’t exceed the relevant contribution limits in any given year. You can also have IRA accounts with multiple IRA providers, again, as long as you don’t exceed IRA contribution limits. For ease of bookkeeping, however, it is much easier to maintain your accounts in as few places as possible.

Self-employed retirement accounts. If you have your own business, you may be able to open a self-employed retirement account, such as a Solo 401k, SEP IRA, Keough, or another self-employed retirement account. If you are self-employed, then I strongly recommend meeting with an accountant to help you determine which business structure and retirement plan option are best for your needs (sometimes your business structure will determine which type of self-employed retirement plan account you are eligible for).

Important note about contribution limits: Thrift Savings Plan contribution limits are the same as other employer sponsored retirement plans such as the civilian TSP, 401k plans, 401b, plans, etc. and the limits apply across all accounts. This is good to know if you make contributions to both the military TSP and another employer-sponsored retirement plan in the same year.

Keep Saving for Retirement

Even if you are receiving a military pension, it is a good idea to continue saving for retirement. People are living longer now than ever before, and the cost of living will only continue to rise due to inflation. You may also find that saving for retirement will give you tax breaks now, or in the future, and potentially give you a variety of ways to manage your investments, and ultimately your estate.

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Social Security Disability Benefits for Wounded Warriors

Most people think of Social Security as a benefit for retirees. In most cases, you need to be age 62 or older to receive social security benefits, but there are other situations when one can receive Social Security benefits. One example is Social Security Disability Insurance, and if you are a wounded veteran, or current military member who is unable to perform his or her duties due to an illness or injury, you may be eligible to receive Social Security Disability Benefits under a program called the Social Security Disability Benefits for Wounded Warriors. And it’s also possible in some situations to receive these benefits when you are on active duty without affecting your pay or other benefits. Let’s take a closer look at this program and how it can benefit our nation’s Wounded Warriors.

Social Security Disability Benefits for Wounded Warriors

Social Security Disability Benefits for Wounded Warriors

Social Security Disability Benefits for Wounded Warriors

The Social Security Administration (SSA) provides disability insurance benefits to qualified tax payers in the event they are determined to be disabled by the SSA. There are two primary forms of disability benefits provided by the SSA, including:

Who is Eligible to Receive Social Security Disability Benefits?

The Social Security Administration only pays disability benefits for long-term or permanent disabilities. They do not pay benefits for short-term or partial disabilities.

Service members who are injured or ill may be eligible to receive Social Security disability benefits if they are determined to be disabled by the SSA, which uses the following criteria: The member must be

  • Unable to do substantial work because of medical condition(s); and
  • Medical condition(s) must have lasted, or be expected to last, at least one year or to result in death.

The SSA also considers how long someone worked, and whether or not he or she has paid Social Security taxes. The years worked to qualify for these benefits vary by age.

Social Security Disability Payments and Active Duty Service

Military service can affect your Social Security benefits, in some cases, increasing your Social Security Benefits. If you are unable to work while on active duty, you may also be eligible to receive SSDI through the Social Security Benefits for Wounded Warriors program.

For example, Active duty military members may be able to receive these Social Security benefits if they are recovering in a hospital or are otherwise unable to work. This can include events such as an illness, being wounded, undergoing physical therapy, receiving treatment at a military medical facility, performing limited duty, or otherwise being disabled. They are able to receive these benefits in conjunction with their standard pay and benefits.

Though the criteria to qualify for SSDI includes a rule which requires recipients to be “unable to do substantial work because of medical conditions,” that doesn’t mean a SSDI recipient can’t work a part time job or earn money through other sources. In some cases, it is perfectly acceptable to receive pay and or other compensation while receiving Social Security Disability Benefits.

Before taking a job while receiving Social Security Disability Insurance, it is a good idea to contact the SSA and or your potential employer to determine if you will be eligible to continue receiving Social Security Disability Insurance if you perform any work.

Social Security Disability is Different than Disability Benefits from the VA

It is important to note that military veterans may be eligible to receive Social Security benefits and Veterans Disability benefits from the VA. These two programs are not the same, and must be applied for separately.

These two programs also do not have the same definitions for what qualifies as a disability. It is possible to receive a partial or short-term disability rating from the VA. The Social Security Administration, on the other hand, does not offer benefits for short-term or partial disabilities. The SSA only provides benefits for those who have been out of work for a year, or whose medical condition is expected to last a year or longer, or whose injuries are expected to result in death.

How to Apply for Social Security Disability Benefits for Wounded Warriors

Service members and veterans who are wounded, ill, or injured and are expected to be unable to perform work for a year or longer should apply for Social Security Disability Benefits as soon as they are able. The SSA requires supporting documentation, including identifying documents, proof of citizenship, and medical records which demonstrate the medical conditions facing the applicant. You should still file even if you are waiting on documentation, as it will get the file started.

Disabled military members may apply for these SSA benefits at any time, including while still on active duty, after they have received their military discharge, or while they are receiving medical care in a civilian or military medical facility.

Wounded Warriors Get Expedited Processing

The SSA identifies military members who were serving on active duty and were disabled on or after October 1, 2001, as Wounded Warriors. All applications from these qualifying U.S. servicemembers are expedited through all the steps in the application process. (note: Servicemembers who were disabled before October 1, 2001 can still apply for the Social Security Disability Benefits, however, the claim may or may not be expedited). You will be notified once a medical determination is made on your disability claim.

For more information, please visit the Wounded Warriors page on the SSA site, use the online application, or read more in the Disability Benefits for Wounded Warriors brochure.

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Veterans Jobs Corps Initiative – Creating Public Service Jobs for Vets

President Obama recently announced the Veterans Job Corps, a new jobs initiative for US Military veterans which is designed to create jobs for military veterans. This proposed $5B initiative is designed to help military veterans find jobs at the local, state, and federal level, primarily in jobs which the president believes would be a good fit for military veterans. Let’s take a look at the President’s proposal, then we’ll dive a little deeper into the details.

Veterans Jobs Corps Initiative

During this speech, President Obama also discusses the economic recovery and the need for extension to the payroll tax cut and other initiatives. President Obama gets to the Veterans Job Corps Initiative around the 5:40 mark. President Obama discusses the skills and talents of military veterans, including working under pressure, managing hundreds of other individuals, managing equipment worth tens of millions of dollars and more. The president also discusses some of the recent initiatives for veterans including the Post-9/11 GI Bill, New Career Resources for Military Veterans, GI Bill for Unemployed Veterans, and more.

You can read the full Veterans Job Corp transcript if you don’t wish to watch the video.

New Jobs Programs for Veterans

The Veterans Jobs Corps Initiative is primarily designed to help veterans find jobs at the local, state, and government level by providing grants to state and local governments to hire veterans in specific job categories. The primary focus is to hire veterans into government positions, such as first responders, including police officers, firefighters, and health care jobs; jobs in the Interior Department to improve parks and services, and enhance entrepreneurship programs for veterans.

More jobs for first responders. Most of the jobs in these fields currently exist at the local and state level, but with the poor economy over the last few years, many of these jobs have dried up – they have either stopped growing, or have been slashed by local governments that can no longer afford to pay for infrastructure improvements and social services. In order to get local governments hiring again in these fields, President Obama announced the Community Oriented Policing Services (COPS) Hiring Grant funding and Staffing for Adequate Fire and Emergency Response (SAFER) grants. These grants are designed to put more people in police and firefighter uniforms over the next few years. Local governments which make an effort to hire more post-9/11 veterans would be first in line for these federal grants.

20,000 jobs rebuilding local communities and national parks. The president is also recommending that Congress provide funds to rebuild our national parks, and restore local communities, by hiring up to 20,000 more people for jobs in the Interior Department over the next five years. This portion of the initiative will serve all military veterans, but there is a particular focus on providing jobs for post-9/11 veterans. Some of the goals of this program are to provide visitor programs at national parks, restore habitats, protect cultural resources, eradicate invasive species, and improve park structures, including roads, trails, visitor facilities, and more.

New entrepreneurship opportunities for veterans. President Obama is recommending expanding and improving entrepreneurship training opportunities for separating service members and veterans. The DoD and Small Business Administration are creating a two-day entrepreneurship program as part of the Transition Assistance Program that will be available to all service members when they make the military to civilian transition. The Small Business Administration will also offer military vets the access to an 8-week online training course for entrepreneurs which will help teach the basics of owning a small business. The latter program will be open to vets after the separate from the service.

How Will the Government Pay for the Veterans Jobs Corps Initiative?

President Obama recommends that Congress fund this initiative by using half the former war budget to pay down debt, and the other half to pay for this program. While that sounds good on paper (or in a sound clip), it’s still a long way from a specific plan.

What are your thoughts on the Veterans Jobs Corps Initiative?

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Expect Delayed Tax Refunds from the IRS

Tax payers who submitted their tax returns early this year may have to wait a little longer than anticipated to receive their tax refund. The IRS recently announced there are delays in tax refunds this year while they put new anti-fraud measures in place on their computer systems. As of right now, the delays are expected to cost tax payers around a week or longer than the scheduled tax refund dates originally announced by the IRS.

Tax Refund Delays

Your Tax Refund May Be Late

The new safeguards put in place by the IRS are designed to better screen tax returns filed electronically and help the IRS combat identity theft fraud and other fraudulent tax refund scams. These thefts cost the government hundreds of millions of dollars each year, and can tie up tax refunds for months while the IRS investigates the fraud.

Who is affected by the tax refund delays?

The IRS is currently stating this is a system wide computer update which affects all tax returns filed before January 26th, regardless of who filed, how they filed, or which type of software they use. What this means to the tax payer is that contacting your accountant of software provider won’t do anything to speed up your return, since this is on the IRS side of the house.

As of right now, the delays are only affecting tax payers who filed their tax returns before January 26, 2012. Taxpayers who filed their returns on or after January 26th should still receive their tax return according to the IRS refund schedule.

What to do if your tax refund is delayed

The first thing to verify your tax return was accepted electronically, and verify the date your tax return was accepted by the IRS. If you filed your tax return manually, then you may or may not be affected since it takes awhile for the IRS to enter the returns into the computer (this is done by hand and can take some time depending on the backlog of returns the IRS is working through).

So far, the IRS has stated this only affects people who used E-file during the first week tax returns were being affected. If the date you filed your tax return is among those affected, then there probably isn’t much you can do except wait it out.

The next thing to do is visit the IRS page, Where’s My Refund page, to verify your tax return will be late. You may also be able to check on your refund date via your tax return software, or your accountant may be able to offer assistance in verifying dates.

If your tax return is being delayed for another reason, then it may be a good idea to contact the IRS. It is possible there was an error in your tax return or there may be another problem holding up your refund.

Photo credit: MoneyBlogNewz

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