From: IRS Media Office;
If you're a
member of the U.S. Armed Forces, the IRS wants you to know about the many tax
benefits that may apply to you. Special tax rules apply to military members on
active duty, including those serving in combat zones. These rules can help
lower your federal taxes and make it easier to file your tax return.
Here are ten
of those benefits:
- Deadline
Extensions. Qualifying
military members, including those who serve in a combat zone, can postpone some
tax deadlines. This includes automatic extensions of time to file tax returns
and pay taxes.
- Combat
Pay Exclusion.
If you serve in a combat zone, you can exclude certain combat pay from your
income. You won't need to show the exclusion on your tax return because
qualified pay isn't included in the wages reported on your Form W-2, Wage and
Tax Statement. Some service outside a combat zone also qualifies for this
exclusion.
- Earned
Income Tax Credit.
You can choose to include nontaxable combat pay as earned income to figure your
EITC. You would make this choice if it increases your credit. Even if you do,
the combat pay remains nontaxable.
- Moving
Expense Deduction. If
you move due to a permanent change of station, you may be able to deduct some
of your unreimbursed moving costs.
- Uniform
Deduction. You
can deduct the costs and upkeep of certain uniforms that regulations prohibit
you from wearing while off duty. You must reduce your expenses by any
reimbursement you receive for these costs.
- Signing
Joint Returns.
Both spouses normally must sign joint income tax returns. However, when one
spouse is unavailable due to certain military duty or conditions, the other
may, in some cases sign for both spouses, or will need a power of attorney to
file a joint return.
- Reservists'
Travel Deduction.
If you're a member of the U.S. Armed Forces Reserves, you may deduct certain
travel expenses on your tax return. You can deduct unreimbursed expenses for
traveling more than 100 miles away from home to perform your reserve duties.
- Nontaxable
ROTC Allowances.
Educational and subsistence allowances paid to ROTC students participating in
advanced training are not taxable. However, active duty pay – such as pay
received during summer advanced camp – is taxable.
- Civilian
Life. After
leaving the military, you may be able to deduct certain job hunting expenses.
Expenses may include travel, resume preparation fees and job placement agency
fees. Moving expenses may also be deductible.
10. Tax Help. Most military bases offer free
tax preparation and filing assistance during the tax filing season. Some also
offer free tax help after April 15.
You can learn
more about these tax benefits in Publication 3, Armed Forces' Tax Guide. The
booklet is available on IRS.gov or you can order it by calling 1-800-TAX-FORM
(800-829-3676).
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