Travel Expense Deductions 

Moving Expenses

Active-duty service members moving due to a military order may be eligible to deduct qualified moving expenses. Civilians and most others cannot deduct moving expenses under current tax law. These deductions can significantly reduce your tax liability. Be sure to keep thorough documentation of your eligible expenses.

Combat Zone Pay

You may be able to exclude pay for service in a combat zone even though that pay would otherwise be taxable.

Automatic 2-month Extension

If you are a U.S. citizen or resident alien, you qualify for an automatic 2-month extension of time without filing Form 4868 if either of the following situations applies to you: 

• Situation 1. You live outside the United States and your main place of business or post of duty is outside the United States.
  
  
• Situation 2. You are in military or naval service on an assigned tour of duty outside the United States for a period that includes the entire due date of the return.

Other Extensions Available

If you aren't in a combat zone or a contingency operation, you may still be eligible for an extension of time to file your return. You can either file Form 4868 for an automatic 6-month extension or pay all of your expected tax due.

Disability Severance Payments to Veterans

Veterans discharged from military service due to medical disability may receive a severance payment. If you received a disability severance payment that was incorrectly taxed, you can file a claim for credit or refund using Form 1040-X for that tax year.

Feeling Stressed About Taxes? We’ve Got You Covered.