As with anything else, it’s vital for military personnel to understand their tax rights and benefits. Too often many tax benefits are overlooked because military personnel are not aware of their rights. Among these are:
- Unreimbursed expenses related to moving can be deducted. For more information refer to IRS Publication 3, Armed Forces’ Tax Guide.
- Combat Pay is not taxable for any period served in a combat zone.
- Tax filing deadlines are usually extended for members of the military.
- Certain costs associated with the upkeep of uniforms are deductible.
- Power of Attorney is allowed for spouses unable to file joint returns due to military duty.
- Members of the US Armed Forces Reserves can deduct unreimbursed travel expenses for traveling over 100 miles away from home to perform duty.
- Certain allowances paid to ROTC Students in advance training are non taxable.
- Job Hunting expenses are also deductible for military personnel who are making the transition to the workforce from the military.
- Lastly, free tax assistance is available for military personnel at tax time.
Your tax accountant is a great resource for understanding your tax rights and benefits. Additionally, IRS Publication 3, Armed Forces’ Tax Guide is also a great resource.
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