Summer is a
busy time for everyone, but particularly for military members and their
families. Whether it’s moving to a new base or traveling to a duty
station, members of the military have many obligations that could impact their
tax situation. Here are 10 IRS tax tips military members should keep in mind
this summer to help with filing a tax return next year.
Moving
Expenses If you are a member of the Armed Forces on active duty and you move
because of a permanent change of station, you can deduct the reasonable
unreimbursed expenses of moving you and members of your household.
Combat Pay If
you serve in a combat zone as an enlisted person or as a warrant officer for
any part of a month, all your military pay received for military service that
month is not taxable. For officers, the monthly exclusion is capped at the
highest enlisted pay, plus any hostile fire or imminent danger pay received.
Extension of
Deadlines The time for taking care of certain tax matters can be postponed. The
deadline for filing tax returns, paying taxes, filing claims for refund, and
taking other actions with the IRS is automatically extended for qualifying
members of the military.
Uniform Cost
and Upkeep If military regulations prohibit you from wearing certain uniforms
when off duty, you can deduct the cost and upkeep of those uniforms, but you
must reduce your expenses by any allowance or reimbursement you receive.
Joint Returns
Generally, joint returns must be signed by both spouses. However, when one
spouse may not be available due to military duty, a power of attorney may be
used to file a joint return.
Travel to
Reserve Duty If you are a member of the US Armed Forces Reserves, you can
deduct unreimbursed travel expenses for traveling more than 100 miles away from
home to perform your reserve duties.
ROTC Students
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.
Transitioning
Back to Civilian Life You may be able to deduct some costs you incur while
looking for a new job. Expenses may include travel, resume preparation fees,
and outplacement agency fees. Moving expenses may be deductible if your move is
closely related to the start of work at a new job location, and you meet
certain tests.
Tax Help Most
military installations offer free tax filing and preparation assistance during
the filing season.
