Tax Tips for Military Families
For all that military families do for our country year after year, it’s only fitting that the IRS provide a few tax breaks for those families affiliated with the military. Many families with an active service member file the 1040-EZ because they do not have many investments or own any property. However, if a military service member has a more complicated return and, for example, is married and filing jointly with property, there are some important nuances in the tax law that they should be aware of.
We have summarized some of the more common tax benefits for active duty military below, and it might also be helpful to seek the help of a tax professional to be sure that you or your family member(s) are taking advantage of any potential tax breaks that apply to you.
Special Military Deductions:
• Moving Expenses: If you are active duty military, you can deduct any moving expenses (related to a location change) that are not covered directly by the military. In most cases, the military covers the vast majority of these moving expenses, but it is nice to know that you can deduct anything remaining.
• The military provides financial support or reimbursement for the majority of the cost of upkeep of regular uniforms. Anything that is not covered can often be deducted. Keep in mind that this tax provision does not cover “special” dress uniforms and the amount you deduct cannot exceed 2% of your adjusted gross income.
• If you are in the military reserve and you travel more than 100 miles, you are able to deduct the standard amount for mileage.
• To support military personnel working to transition from military service to civilian life, the IRS allows these individuals to deduct expenses like travel, resume services and other expenses related to a job search.
• Military personnel receive an automatic tax extension (usually 60-180 days) for filing their taxes and even paying their taxes, especially if they have served in a combat zone. The only catch is that the individuals need to notify the IRS ahead of time.
• There are also provisions for active military personnel to be exempt from deducting income received while serving in a combat zone.
Success Tax Relief offers tax preparation support to military personnel
There are many tax benefits offered to active duty military personnel, but the rules and regulations can be complex and sometimes difficult to sort out. If you want to be sure that you are maximizing all possible deductions that apply to you and your family, give the expert professionals at Success Tax Relief a call at (877) 958-6638. We offer all types of tax support for clients accross the country and we keep current on all of the tax laws that benefit military personnel.
Success Tax Relief works to be a true advocate for our clients and our goal is to help you submit an accurate, honest and concise return while keeping more money in your pocket. Leave the worry to us!