How Members of Military Should Plan Their Taxes

Members of the United States military have many events happen in their lives that can affect their personal tax situations.  Here is some advice for a few situations you might come across as a taxpayer in the military service.

If you are on active duty and have to move because of a permanent change of station, you are entitled to deduct the unreimbursed expenses incurred by you and your family during your reassignment.

If you serve in a combat zone for any part of a month, your income for that entire month is not taxable.  The monthly exclusion is capped for officers at the highest rate of enlisted pay, plus hostile fire or imminent danger pay received.

Qualifying members of the military can have certain tax matters postponed.  For example, tax deadlines for filing an income tax return, filing claims for refund, and paying taxes can be extended for those in the military service.

If military regulations require that you do not wear certain uniforms while off duty, you can deduct the maintenance and cost of those uniforms minus any allowance or reimbursement.

Married couples filing jointly may use power of attorney in substitution for the signature of a spouse engaged in active military duty.

If you are a member of the United States Armed Forces Reserves and must travel more than one hundred miles to perform duties as a reservist, you can deduct the cost of that travel on your income tax return.

ROTC students participating in advanced training and receiving a subsistence allowance do not pay tax on that allowance.  Active duty pay for ROTC students, such as received during summer advanced camp, is taxable.

Some costs of transitioning to civilian life may be tax deductible, especially those associated with looking for employment or locating to a specific area because of work.

Military installations offer free preparation and tax filing services during tax season.

IRS Tax Information Publication 3 is an Armed Services Guide to taxes.  It is available at the IRS website.

Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. His famous Tax eBook “Stop donating your money to IRS” which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax. Just visit his website http://www.planningyourtax.com/ and claim your FREE eBook.

Article Source:http://www.articlesbase.com/taxes-articles/how-members-of-military-should-plan-their-taxes-1646609.html