Officials with the Internal Revenue Service remind members of the U.S. Armed Forces that veterans and their families may qualify for special tax benefits.
Regardless of how simple or complex a member of the military’s tax inquiries may be, the IRS vows to provide adequate information to make filing taxes easier for those serving the country.
The following benefits exist for service members:
- Combat pay — This pay is partially or fully tax-free. Service members serving in support of a combat zone or in a qualified hazardous duty area may also qualify for this exclusion.
- Combat zone tax deadline extensions — Qualifying members of the military, such as those who serve in a combat zone or in contingency operations outside the U.S., can get additional time to file and pay their taxes.
- Armed Forces dependency allotments — Assistance programs for dependent care allotments contributed by the government are excludable benefits and not included in the military member’s income.
- Earned Income Tax Credit — The EITC is worth up to $7,830 for tax year 2024. Low and moderate-income service members who receive nontaxable combat pay can use specific qualifications that may increase the amount of the EITC for which they qualify, meaning they may owe less tax or get a larger refund.
- Moving expenses — Members of the U.S. Armed Forces on active duty may be eligible to deduct unreimbursed relocation expenses if their move was due to a military order and permanent change of station. Also, allowances paid to move members of the U.S. Armed Forces for a permanent change of station aren’t taxable.
More information on benefits for military members can be found here.
