From our CPA office in St. Petersburg, FL – Members of the United States military and their families face many life challenges based on the duties, expenses, and transitions of the military lifestyle. As such, active members of the U.S. armed forces should be aware of the following tax benefits available:
1. Moving Expenses. Active duty members that move because of a permanent change of station may be able to deduct unreimbursed moving expenses.
2. Combat Pay. Military pay received during any month by enlisted members or warrant officers while serving in a combat zone for any part of that month is not taxable. For officers, the monthly non-taxable exclusion is capped at the highest enlisted pay, plus any hostile fire or imminent danger pay received.
3. Extension of Deadlines. The deadlines for filing returns, paying taxes, filing claims for refunds, and other IRS actions are automatically extended for qualifying members of the military.
4. Uniform Costs. Certain costs for purchase and upkeep of uniforms are deductible.
5. Travel to Reserve Duty. Members of the US Armed Forces Reserves can deduct unreimbursed travel expenses for traveling more than 100 miles away from home to perform reserve duties.
6. Transitioning Back to Civilian Life. Expenses incurred seeking a new job may be deductible. These expenses include travel, resume preparation fees, outplacement agency fees, and other costs.
We at McAtee and Associates want to insure that members of armed forces receive all tax benefits they are entitled to. If you have questions, call us today. As tax professionals, McAtee & Associates can help both individual and business taxpayers with all their tax matters.
ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.
