Military Tax Benefits

If you or someone in your family is a member of the United States Armed Forces, you may be eligible for certain tax benefits. Below are some of the benefits you should be aware of:

Some Military Pay and Benefits Are Not Considered Taxable Income: Combat pay is safe from taxes. Many military benefits are also not taxable, such as: Group-term life insurance, professional education, death allowances, relocation allowances, housing allowances, and more.

You Can Claim Your Home State For Taxes: Military families often must travel and relocate throughout their career. This can be a nightmare when it comes to paying taxes! Instead of having to file tax returns for every state you have lived in, the Servicemembers Civil Relief Act (SCRA) has made it so that regardless of where you live, you can keep your home state residence when you file your taxes.

Potential to Postpone Tax Deadlines: Under some circumstances, such as serving in a combat zone or overseas, you may be granted additional time to file your taxes. If you are in a combat zone you are given 180 days from the time you return. If you become injured while serving in a combat zone, you are given 180 days to file, starting after you are released from hospitalization. Additionally

Earned Income Tax Credit: If you get nontaxable combat pay, you may opt to include it under your taxable income to increase the amount of credit, which may lead to owing less tax or a larger refund.

Signing Joint Returns: A joint return normally needs to be signed by both spouses, but if military service prevents you from signing, your spouse may be able to sign for you or get a power of attorney.

Deduct Military Moving Costs: For people outside of the military, you must meet time and distance requirements in order to deduct your moving costs. However, if you are in the military and are not reimbursed or given an allowance to move, you can deduct some of your costs.

Sandra King Enrolled Agent

Sandra King is an enrolled agent, empowered by The United States Treasury to prepare your personal or business tax filing. While her services are offered nationwide, Sandra King locally serves the greater Dallas-Fort Worth area, including but not limited to Arlington, Bedford, Colleyville, Euless, Fort Worth, Grand Prairie, Hurst, Mansfield, North Richland Hills, and Richland Hills.