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IRS reminds U.S. soldiers of special tax breaks

NATIONWIDE (WOWO) – With the April tax deadline approaching, the Internal Revenue Service would like to remind soldiers in the U.S. Armed Forces that there are special tax benefits available to them and their families.

Service members who prepare their own tax return qualify for free e-filing on IRS Free File.  Most military bases offer filing assistance or free tax preparation to soldiers.  Many bases will also offer help to those filing after the deadline.

Chuck Rettig, IRS Commissioner, says “The IRS appreciates the women and men who are serving in the United States military, both at home and abroad.” “We encourage military families to review the resources available at IRS.gov since there are special circumstances that can affect tax payment and return filing deadlines for military personnel. Lastly, we extend our personal appreciation to each and every member of the military, their families and veterans for your service to our country.”

There are several key benefits for service members.

  • Combat Pay is partially or fully tax-free.
  • Postponement or possible automatic extension of tax deadlines is offered to service members who are in a combat zone or deployed outside of the U.S.
  • Earned income tax credit with a special computation method can help low and moderate income service members who receive nontaxable combat pay. They can possibly use a special computation method that can boost their earned income tax credit.
  • Dependent care assistance programs are excludable benefits and not included in the soldier’s income.
  • Moving expenses deduction is suspended except for certain armed forces members.

When service members are deployed, their spouse may be able to sign their joint income tax return.  Normally a power of attorney is required however, a military installation’s legal office may be able to help.

To read more on U.S. Armed Forces tax information, click here.

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