End the Year Strong Financially

The end of the year is the perfect time to review your financial situation and ensure you're maximizing every benefit available to you as a service member. This checklist covers the essential items every active duty member should address before December 31.

SCRA Benefits Review

1. Have you filed for SCRA rate reductions on all qualifying debts?

Review every debt you incurred before your active duty start date. If you haven't requested the 6% rate cap, you're leaving money on the table. Make a list and file before year-end.

2. Have you received refunds for excess interest paid this year?

If you filed SCRA requests during the year, verify you received appropriate refunds. Calculate whether the refund amount matches what you overpaid. Follow up on any discrepancies.

3. Have you added new pre-service debts to your SCRA filings?

Sometimes service members discover old debts—medical bills, forgotten credit accounts, or debts in collection. If these originated before your active duty, they qualify for SCRA protection.

Tax Preparation

4. Combat Zone Tax Exclusion (CZTE)

If you served in a designated combat zone, your military pay may be tax-free for those months. Ensure your W-2 correctly reflects this exclusion.

5. Moving Expense Deductions

Military members can still deduct unreimbursed moving expenses related to a military move, even though this deduction was eliminated for most civilians. Keep receipts for all PCS-related expenses.

6. State Tax Residency

Under the Military Spouses Residency Relief Act and related laws, you may maintain residency in a state different from where you're stationed. Review your state tax obligations and ensure you're filing correctly.

7. TSP Contributions

Have you maximized your Thrift Savings Plan contributions? The 2024 limit is $23,000 (plus $7,500 catch-up if over 50). The TSP is one of the best retirement vehicles available—max it out if possible.

Insurance Review

8. SGLI Coverage

Review your Servicemembers' Group Life Insurance coverage and beneficiary designations. Life changes—marriages, divorces, children—require updates to your beneficiary forms.

9. FSGLI for Family Members

Family SGLI covers your spouse and children. Review coverage amounts and ensure they're adequate for your family's needs.

10. Civilian Insurance Needs

Do you have adequate auto, renters/homeowners, and umbrella insurance? Year-end is a good time to review policies and shop for better rates.

Debt Management

11. Review All Account Statements

Look at every loan and credit account. Check for:

  • Correct interest rates (especially post-SCRA filing)
  • Unexpected fees or charges
  • Errors in your payment history

12. Consider Extra Payments

If you received a year-end bonus or have extra savings, consider making additional principal payments on high-interest debt. Even with SCRA's 6% cap, paying down principal saves money.

13. Review Your Credit Reports

Pull your free annual credit reports from all three bureaus. Look for errors, fraudulent accounts, and ensure all your SCRA-covered accounts show correct information.

Emergency Preparedness

14. Emergency Fund Status

Do you have 3-6 months of expenses saved? Deployments and PCS moves can create unexpected costs. Build or replenish your emergency fund.

15. Power of Attorney and Legal Documents

Ensure your power of attorney, will, and other legal documents are current. If you'll deploy next year, handle this now rather than in the rush of pre-deployment.

Benefits Verification

16. BAH and BAS Rates

New BAH rates are published in December. Check if your rate will change and budget accordingly.

17. GI Bill and Education Benefits

If you're using education benefits, verify your remaining entitlement and plan for next year's courses.

18. VA Benefits Enrollment

If you haven't enrolled in VA healthcare, consider doing so even if you're healthy. It establishes a record and provides a safety net.

Make This a Yearly Habit

Financial readiness isn't a one-time event—it's an ongoing practice. Set a calendar reminder to run through this checklist every December. A few hours of review can save thousands of dollars and prevent major headaches in the year ahead.

Your service earns you these benefits. Make sure you're collecting every one of them.