There are many tax benefits available to the men and women serving in the Armed Services. May is National Military Appreciation Month, and the Internal Revenue Service has informative posts on its website informing members of the military and their families the many tax benefits available to them. To assist in getting the information out to our men and women I am reposting the information here along with the links to the necessary forms. If a link is broken then go to the IRS website, IRS.gov, and search for the form.
First, get yourself a copy of the IRS Publication 3, Armed Forces Tax Guide, a free booklet packed with valuable information and tips designed to help service members and their families take advantage of all tax benefits allowed by law.
The available tax benefits include:
- Combat pay is partly or fully tax-free.
- Reservists whose reserve-related duties take them more than 100 miles from home can deduct their unreimbursed travel expenses on Form 2106 or Form 2106-EZ, even if they don’t itemize their deductions.
- Eligible unreimbursed moving expenses are deductible on Form 3903.
- Low-and moderate-income service members often qualify for such family-friendly tax benefits as the Earned Income Tax Credit, and a special computation method is available for those who receive combat pay.
- Low-and moderate-income service members who contribute to an IRA or 401(k)-type retirement plan, such as the federal government’s Thrift Savings Plan, can often claim the saver’s credit, also known as the retirement savings contributions credit, on Form 8880.
- Service members stationed abroad have extra time, until June 15, to file a federal income tax return. Those serving in a combat zone have even longer, typically until 180 days after they leave the combat zone.
- Service members may qualify to delay payment of income tax due before or during their period of service. See Publication 3 for details including how to request relief.
Service members who prepare their own return qualify to electronically file their federal return for free using IRS Free File. In addition, the IRS partners with the military through the Volunteer Income Tax Assistance program to provide free tax preparation to service members and their families at bases in the United States and around the world.
Thank you for all you do.Tags: #taxes, Combat Pay, Earned Income Tax Credit, Military