As tax filing season approaches, the Internal Revenue Service wants members of the military and their families to know about the special tax benefits available to them.
IRS Publication 3, Armed Forces Tax Guide, is 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. Here are some of those tax benefits.
Combat pay is partially or fully tax-free.
The Earned Income Tax Credit may be worth up to $6,269 for low-and moderate-income service members.
An IRA or 401(k)-type plan might mean saving for retirement and cutting taxes too.
An automatic extension to file a federal income tax return is available to U.S. service members stationed abroad.
Most military bases offer free tax preparation and filing assistance during the tax filing season.
Both spouses normally must sign a joint income tax return, but if one spouse is absent due to certain military duty or conditions, the other spouse may be able to sign for him or her.
Those leaving the military and looking for work may be able to deduct some job search expenses, such as the costs of travel, preparing a resume and job placement agency fees.
Courtesy of IRS
For more information contact Neikirk, Mahoney and Smith at 502-896-2999
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