Marine spouse and ER nurse Sarah Ogasian vividly recalls the moment her husband, Master Sergeant John Ogasian, discovered their savings account had been completely drained. The couple lived in Highlands, New York, while John was stationed at Stewart Air National Guard Base in Newburgh before relocating to Texas, where he now serves at Fort Worth alongside a Naval Air Station.
“He woke up, went to work, looked at his app, and saw it was empty… Our account was down to a penny,” Sarah said.
Representatives from the New York State Department of Tax and Treasury informed Sarah that their funds had been seized by the state for tax collection purposes.
Although New York later acknowledged the error and canceled its assessment, Ogasian is still waiting for her money to be returned. She mentioned that “processing fees are complicating the check’s return.” It makes one wonder—if this could happen to them, how many others might be affected?
The situation raises concerns about whether state tax systems effectively apply federal protections, particularly the Servicemembers Civil Relief Act (SCRA) and the Military Spouse Residency Relief Act (MSRRA). The SCRA is intended to safeguard active service members from specific state taxes and financial actions that could occur in their legal residence. This means that a Marine temporarily stationed in New York, while legally a resident of tax-free New Hampshire, should not face state taxation on military income.
The Military Spouse Residency Relief Act extends similar protections to spouses, allowing them to declare their hometown for tax reasons, even if they work in the state where they’re stationed.
The family’s bank indicated its commitment to honoring the SCRA and complying with all relevant laws but declined to provide details on Ogasian’s specific case.
New York flagged military families for tax issues based on their mailing address, but John’s military documents clearly state that New Hampshire is their legal residence, and thus, they should be exempt from state taxation.
When the Ogasians reached out, they were surprised to discover that some state officials were unfamiliar with the protections provided by the SCRA. “My husband had to explain it to them, which felt a bit absurd,” Sarah noted.
Without their savings, the family faced challenges like buying school clothes, repairing a broken van, or paying for their children’s extracurricular activities. “Starting school in Texas, we had to sit the kids down and be honest about our finances,” she explained. “We literally couldn’t afford basic necessities like new shoes or backpacks.”
Sarah reflected on the sacrifices her family has made over the years. She worked as an ER nurse during the Covid-19 pandemic while John has served in the Marines for over 20 years, including multiple tours abroad. “I was on the frontlines in New York, witnessing lives lost while families were separated. And now, it feels like New York disregards our contributions,” she expressed.
Attempts to reach the New York governor’s office and the state taxpayer rights advocates resulted in no immediate response.
Currently, the Ogasians are left to navigate the frustrating situation as their hard-earned savings remain inaccessible. Sarah’s resolve is clear: “People say they’re suing the state; I want that money back too. It’s crucial for military families to know their rights, especially about the SCRA. Stand your ground if you feel you’re being treated unfairly.”
