Deductions on advance pay include?

• A. All taxes only
• B. All taxes and Garnishments
• C. All taxes; Armed Forces retirement home; SGLI; Dental insurance; Montgomery GI Bill; Current repayment of previous advance pay; Garnishments; Indebtedness of the U.S.; Forfeitures of pay
• D. Garnishments and indebtedness only

Answer: (C)

Deductions from advance pay cover more than just taxes; they can include a wide range of authorized withholdings to recover the advance and maintain benefit and debt obligations. When advance pay is issued, the pay system may withhold not only taxes but also amounts for SGLI, dental insurance, Montgomery GI Bill contributions, any current repayment of the advance, garnishments, indebtedness to the U.S., forfeitures of pay, and even contributions to the Armed Forces Retirement Home. This broad set reflects the various financial commitments a service member may have, all of which can be collected through payroll before net pay is issued. The best answer includes all of these items, whereas the other options leave out some allowable deductions like insurance premiums, MGIB, AFRH, or repayment of previous advances.