Military Tax Break 
By Capt. Bud Schneeweis, USCG-Ret., Director; Lt. Col. William A. Pierce, USA-Ret.; Cmdr. Katherine O’Neill Tracy, USNR-Ret.; and Phil Dyer, CFP Benefits Information Benefits Information

Previously, military personnel were able to exclude profits on the sale of their home from capital gains taxes if they had owned and lived in the home two out of five years before the sale. But when the president signed the Military Tax Relief Act of 2003, the period was extended to 10 years for those “serving on qualified official extended duty as a member of the uniformed services.” The term “qualified official extended duty” means any extended active duty in excess of 90 days while serving at least 50 miles from such property or while residing under government orders in government quarters. 

The change is retroactive to 1997. If servicemembers already have paid the capital gains tax because they did not qualify previously, they can file an IRS Form 1040X by Nov. 10, 2004, to obtain a refund.

TFL Frequently Asked Questions 

I’m enrolled in the Uniformed Services Family Health Plan (USFHP). Am I eligible for TRICARE For Life (TFL)?

No. As long as you are enrolled in USFHP, you cannot use other TRICARE benefits. However, effective Oct. 1, 2001, your USFHP enrollment fee will be waived if you purchase Medicare Part B.

Is there an annual fee for TFL?

There is no fee for TFL; however, retirees must be enrolled in Medicare Part B and pay the Part B monthly premium to be eligible. 

Must Congress renew TFL each year?

No. TFL is a permanent program.

Should I cancel my current Medigap coverage?

This is a personal decision. You should evaluate your health insurance needs to determine whether you need Medigap coverage. You might want to retain it, for example, if a preexisting condition could prevent you from returning to Medigap coverage.

To read more about TFL, please visit the TFL section of TRICARE’s online handbook at www.tricare.osd.mil/tricarehandbook.

AMC Information

What is the Veterans Benefits Administration (VBA) Appeals Management Center (AMC)?

The AMC was created to process appealed claims that have been remanded to the VBA by the Board of Veterans’ Appeals (BVA) or the Court of Appeals for Veterans Claims. The AMC implements the BVA’s remand instructions involving evidence development and renders a decision on the claim. The concentration of this appeals-processing expertise in one location is intended to improve the timeliness and accuracy of decisions. The AMC was established following a federal court decision that invalidated certain regulations of the BVA that permitted it to develop evidence on its own for claims it intended to remand to the VBA.

Why is the AMC in Washington, D.C.?

By law, the VA must process remands expeditiously, so VA officials decided to centralize this function. The Washington office is located blocks from the BVA, making the physical transfer of cases easier. The location also enables the AMC to take advantage of resources within the regional office and BVA and VBA headquarters.

What other changes are being made at the Washington office as a result of the establishment of the AMC?

In November 2003, the Pittsburgh office assumed responsibility for processing claims received from veterans and their dependents living abroad. These claims formerly were processed at the Washington office. 

The Washington office also will devote resources to its Operation Early Intervention program, which provides assistance to severely disabled servicemembers hospitalized at Walter Reed Army Medical Center and Bethesda Naval Hospital.