Tax Guide for Military & Veterans

“What are typical issues military members face with their tax returns?

Military members may face several unique issues while filing their tax returns for the year. First, military members can qualify for an automatic 2-month extension for filing and paying taxes if they are living outside the US. Interest will still accrue on any taxes not paid by the regular due date, but no penalties will be assessed. Additionally, active military members can receive exclusion from certain combat pay.

If a spouse or someone else is filing a tax return on your behalf, it’s important that you file a power of attorney form, IRS Form 2848, to give permission to sign the return on your behalf. It’s important that members of the military use someone who is familiar with these various unique rules to help with tax return preparation. The Volunteer Income Tax Assistance program is offered for free by the IRS in order to help with issues unique to those in the military.”

Read more from Nichole Williams in “Tax Guide for Military & Veterans” on MoneyGeek.com here.