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IRS Tax Tips for Military Members

Submitted by admin on Mon, 8/30/2010 - 12:00 am

Here are 10 IRS tax tips military members should keep in mind this year to help with filing a tax return next year.

  1. Moving Expenses – If you are a member of the armed forces on active duty, and you are relocated to a new base, you can deduct the reasonable unreimbursed expenses of moving your household.
  2. Combat Pay – If you serve in a combat zone as an enlisted person, or warrant officer for any part of a month, all of your military pay received for that month is NOT taxable. There is an exclusion for officers, check with your tax preparer if this is the case.
  3. Filing Deadline Extension – You will automatically qualify for an extended deadline for taking care of tax matters.
  4. Uniforms – All unreimbursed expenses for uniform cost and upkeep can be deducted if you are prohibited from wearing them while off duty.
  5. Joint Tax Return Filing – Generally, jointly filed tax returns by a husband and spouse must include signatures by both parties, but due to the nature of obtaining a signature by the enlisted spouse, the other spouse can sign for the enlisted spouse with a Power of Attorney.
  6. Travel to Reserve Duty – If you are a member of the armed forces reserves, you can deduct your unreimbursed travel expenses for traveling more than 100 miles away from home to perform your reserve duties.
  7. ROTC Students – Subsistence allowances paid to ROTC students participating in advanced training are NOT taxable, however, active duty pay is taxable.
  8. Civilian Life Transition – You may be able to deduct some costs you incur while looking for a new job, some may include travel, resume preparation fees, placement agency fees, and relocation fees.
  9. Free Tax Help – Most military installations offer free tax filing and preparation assistance during the tax filing season.
  10. Tax Information – The Armed Forces’ Tax Guide, summarized many important military-related tax topics, and can be downloaded here (IRS Publication 3)

Courtesy of IRS tax tips and news.