Special Tax Benefits for Armed Forces Personnel
Members of the U.S. Armed Forces receive several tax benefits. Special tax rules apply to military members on active duty, including those serving in combat zones. These rules can help lower your federal taxes and make it easier to file your tax return. Here are ten of those benefits: 1. Deadline Extensions. Qualifying military members, including those who serve in a combat zone, can postpone some tax deadlines. 2. Combat Pay Exclusion. If you serve in a combat zone, you can exclude certain combat pay from your income. 3. Earned Income Tax Credit. You can choose to include nontaxable combat pay as earned income to figure your EITC. 4. Moving Expense Deduction. If you move due to a permanent change of station, you may be able to deduct some of your unreimbursed moving costs. 5. Uniform Deduction. You can deduct the costs and upkeep of certain uniforms that regulations prohibit you from wearing while off duty. You must reduce your expe