Veterans may qualify for military tax credit

Although Tax Day is roughly five months away, the Minnesota Department of Revenue is reminding veterans who file Minnesota tax returns about a benefit available to them.

Veterans who served in a combat zone or hazardous duty area may qualify for the Credit for Military Service in a Combat Zone. For service in 2007 and 2008, the refund is equal to $59 for each month of service. However, for those who served starting on January 1, 2009, the credit is $120 for each month, according to the Echo Press.

“We thank all members of the military for their hard work and service this Veteran’s Day. Their dedication and sacrifice is an inspiration,” said Revenue Commissioner Ward Einess told the newspaper. “With the recently doubled military tax credit, we want to make sure all veterans receive the benefits they deserve.”

Veterans who want to claim credit should complete and file Form M99. Credits can be claimed for service in 2007 until October 15, 2011. Currently, more than 20,500 veterans have filed for refunds totaling more than $9,775,000, the newspaper reports.

Many states have different tax incentives for servicemembers. Veterans should meet with their tax preparer to determine whether they qualify for the credit.

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Posted To: Tax Ranger's Blog By: Tax Ranger On: Wednesday, December 29, 2010
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