Military personnel have some unique duties, expenses and transitions. Some
special tax benefits may apply when moving to a new base, traveling to a duty
station, returning from active duty and more. These tips may put military
members a bit “at ease” when it comes to their taxes.
- 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.