You may be entitled to a tax break if you are required to make a permanent change of station (PCS) move. If you incur any personal expenses related to a PCS move, you may be able to claim the deduction on your taxes.
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Military Money Issues: Tax Exempt, Tax-Deductible, and Taxing

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Is it time to pay the tax man? Not always; when it comes to your military allowances, bonuses and benefits, many items give you a better tax break, or a break from paying any taxes at all.

TAX BREAKS

You may be entitled to a tax break if you are required to make a permanent change of station (PCS) move. If you incur any personal expenses related to a PCS move, you may be able to claim the deduction on your taxes.

Keep in mind that you can NOT claim any expenses covered by your officer pay, enlisted pay or entitlements. If your move was paid for in full by the government, it can't be used as a tax write-off.

You may be able to write off a "do-it-yourself" move (what the military pay experts often refer to as a "DITY Move") or some types of travel such as Guard and Reserve weekend training.

TAX-DEDUCTIBLE INCOME VS. TAX-FREE INCOME

Military pay such as enlisted basic pay or officer pay is taxable, but your benefits are not.

If you deploy to a combat zone, you may be entitled to a period of tax-free basic pay depending on current legislation. When it comes to tax time, you will need to furnish proof of this tax exemption with a copy of your orders.

Don't make the mistake of not filing your tax forms even though you didn't owe any tax that year. Avoid an audit by submitting the paperwork even if your "tax owed" column equals zero.



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