With tax season right around the corner, now is the time to pay heed to the many deductions and credits out there for the armed forces. Being in both the tax industry and a highly dense military town I see a lot of military members and their families surprised at what our tax preparers educate them on in a simple 15 to 30 minute tax interview when filing. There is a lot of information out there for you to look into in anticipation to file your next tax return so let’s catch up and get some education!!!
Military Tax Tips
The IRS gives you 10 military tax tips to help you when filing your return next year. You can learn about Moving Expenses, Combat Pay, Extensions of Deadlines, and Joint Returns just to name a few. I know it can be boring stuff but it may just be the difference in reducing your tax liability and increasing the size of your refund!
Exclusions – Combat Zone Service
You probably already know this but Combat zone pay is generally not taxable unless you are an officer. (In that case there are limits to the maximum amount) Learn more about the military pay exclusion to see if you qualify.
There is a lot of information out there for you to learn and take advantage of:
- Publication 3, Armed Forces' Tax Guide (in depth look into the special tax situations of active members of the U.S. Armed Forces)
- Armed Services Tax Assistance 2009 - Podcasts
- New Law: Additional Military Families to Get Stimulus Payments This Fall
- And much, much, more!!!
The information is out there! If it seems like too much information and not enough time don’t worry there are great people out there to assist. Whether you file yourself or use a paid preparer please make sure to utilize all the advantages you have as a service member! If you have any questions contact your local Liberty Tax Service office to assist.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.