Top 10 Tips about Tax Breaks for the Military
If
you are in the U. S. Armed Forces, special tax breaks may apply to you.
For example, some types of pay are not taxable. Certain rules apply to
deductions or credits that you may be able to claim that can lower your
tax. In some cases, you may get more time to file your tax return. You
may also get more time to pay your income tax. Here are the top 10 IRS
tax tips about these rules:
1. Deadline Extensions. Some members of the military, such as those who serve in a combat zone, can postpone some tax deadlines. If this applies to you, you can get automatic extensions of time to file your tax return and to pay your taxes.
2. Combat Pay Exclusion. If you serve in a combat zone,
certain combat pay you get is not taxable. You won’t need to show the
pay on your tax return because combat pay is not part of the wages
reported on your Form W-2, Wage and Tax Statement. If you serve in
support of a combat zone, you may qualify for this exclusion.
3. Earned Income Tax Credit or EITC. If you get nontaxable combat pay, you can include it to figure your EITC. Doing so may boost your credit. Even if you do, the combat pay stays nontaxable.
4. Moving Expense Deduction. You
may be able to deduct some of your unreimbursed moving costs. This
applies if the move is due to a permanent change of station.
5. Uniform Deduction.
You can deduct the costs of certain uniforms that you can’t wear while
off duty. This includes the costs of purchase and upkeep. You must
reduce your deduction by any allowance you get for these costs.
6. Signing Joint Returns. Both
spouses normally must sign a joint income tax return. If your spouse is
absent due to certain military duty or conditions, you may be able to
sign for your spouse. In other cases when your spouse is absent, you may
need a power of attorney to file a joint return.
7. Reservists’ Travel Deduction.
If you’re a member of the U.S. Armed Forces Reserves, you may deduct
certain costs of travel on your tax return. This applies to the
unreimbursed costs of travel to perform your reserve duties that are
more than 100 miles away from home.
8. ROTC Allowances. Some amounts paid to ROTC students in
advanced training are not taxable. This applies to allowances for
education and subsistence. Active duty ROTC pay is taxable. For
instance, pay for summer advanced camp is taxable.
9. Civilian Life. If
you leave the military and look for work, you may be able to deduct
some job search expenses. You may be able to include the costs of
travel, preparing a resume and job placement agency fees. Moving
expenses may also qualify for a tax deduction.
10. Tax Help. Most
military bases offer free tax preparation and filing assistance during
the tax filing season. Some also offer free tax help after April 15.
For more, refer to Publication 3, Armed Forces’ Tax Guide. It is available on IRS.gov/forms at any time.Additional IRS Resources:
· Publication 521, Moving Expenses
· Publication 529, Miscellaneous Deductions
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