IRS Tax Tips for Military Members
Here are 10 IRS tax tips military members should keep in mind this year to help with filing a tax return next year.
- 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.
- 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.
- Filing Deadline Extension – You will automatically qualify for an extended deadline for taking care of tax matters.
- Uniforms – All unreimbursed expenses for uniform cost and upkeep can be deducted if you are prohibited from wearing them while off duty.
- 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.
- 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.
- ROTC Students – Subsistence allowances paid to ROTC students participating in advanced training are NOT taxable, however, active duty pay is taxable.
- 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.
- Free Tax Help – Most military installations offer free tax filing and preparation assistance during the tax filing season.
- 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.
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