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Tax Tips for the Military

by | Jul 22, 2015 | Uncategorized

Are you a member of the U.S. Armed Forces?

If so, special tax breaks may apply to you. Some types of pay are not taxable, and there are certain rules that apply to deductions or credits that you may be able to claim, which will lower your tax bill. You may even be granted more time to file your tax return or pay your income tax. Here are a few IRS tax tips to know about these specific rules.

Deadline Extensions. Certain members of the military, such as those who serve in a combat zone, can postpone some tax deadlines. If applicable, you can get automatic extensions of time to file your tax return and pay your taxes.

ROTC Allowances. Some amounts paid to ROTC students in advanced training are not taxable. This applies to allowances for education and subsistence. Note that active duty ROTC pay is taxable.

Uniform Deduction. You are able to deduct the costs of certain uniforms that you can’t wear while off duty. Included is the cost of purchase and upkeep. How must reduce your deduction by any allowance you get for these costs.

Civilian Life. If you leave the military and look for work, you may be able to deduct some job search expenses. For example, you may be able to include the costs of travel, preparing a resume, and job placement agency fees.

Combat Pay Exclusion. If you serve in a combat zone, certain combat pay you get isn’t taxable. You don’t need to show the pay on your tax return because combat pay is not part of the wages reported on your Form W-2, Wage and Tax Statement.

To learn more tips about tax breaks for the military, and to read the entire article, please visit www.irs.gov.

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