Millions of people nationwide are in the final stages of putting together their tax information for 2013, but many maybe worried about the ways in which they will be able to reduce their liabilities. This certainly includes military families many, of whom may be living on relatively tight budgets, and could therefore use any tax break available to them. Fortunately, there are many standard deductions which may actually benefit them in particular.
For example, in many cases consumers can write off expenses related to their jobs, as long as they meet certain conditions, according to a report from Military.com. This may be especially helpful for those serving in the reserves if they are a signed to units which are more than 100 miles from their home, which is a relatively common phenomenon. Travel expenses which are unreimbursed by any person's employers, including costs for lodging and meals (in most circumstances) are able to be deducted as a means of reducing the taxpayer's adjusted gross income, and that could end up saving reservists significant sums.
In addition, military members who faced significant medical or dental expenses over the course of 2013 (either for themselves, their spouses, or their dependents who are not covered by their standard health insurance) can be deducted up to a certain point, the report said. In the past, taxpayers could write off all such expenses that exceeded 7.5 percent of their adjusted gross income. However, for the new tax year, that number is now 10 percent. Nonetheless, those that faced sizable medical bills last year may be able to write off significant amounts.
else can be deducted?
Another common way to reduce taxable income is to make charitable donations, and military families in particular may be able to benefit from such an allowance, the report said. Contributions made to organizations that meet specific qualifications can be deducted for as much as 50 percent of a household's adjusted gross income in most cases. However, with sizable contributions, especially those made with something other than cash (such as donating an old car), it will be extremely important to get a receipt from that organization.
Consumers who are worried about their liability might want to make sure that they're consulting with a tax professional as a means of ensuring they're maximizing their benefits.
Disclaimer: 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.