Military Money and Finance

MILITARY TAXES
Earning Income and Paying Taxes

Every American pays taxes. As a military servicemember, you are entitled to some unique tax benefits, advantages, timesavers and rebates - a service to you for your military service to our country.

To start, military members should use Free File to prepare and e-file their federal income taxes - it's online and it's free. In addition to avoiding the cost of an outside tax service or preparer, filing taxes electronically saves you time. The adage that "time is money" is especially true here: Free File informs you of the newest tax breaks, to ensure that all military servicemembers get the maximum tax rebates possible, as fast as possible.

If you're serving in a combat zone, the IRS automatically extends the deadline for filing your tax returns, paying taxes, filing claims for refunds and taking other actions related to federal income tax. The IRS also extends the deadline for some US Armed Forces deployed overseas.

Many US Armed Forces personnel are also eligible for the Earned Income Tax Credit. This a refundable federal tax credit is one of the most successful tax credit programs, helping lift the earned income of civilians and military members alike.

This is just the start of the tax breaks afforded to the military. Stay in touch with all the newest tax advantages for military servicemembers, right here at Military Hub.

MILITARY TAX BREAKS

Starting in May, 2008, the IRS will issue economic stimulus payments to Americans. Even military individuals and families who normally do not file a tax return because they have no filing requirement may qualify for an economic stimulus payment.

COMBAT ZONE TAX BREAKS

If you are on active military duty as part of the U.S. Armed Forces serving in a combat zone, special tax provisions, designed just for active military like you, includes extensions for filing tax returns and paying taxes, exclusion of some military pay from taxes, and more.

DISABILITY EXEMPTIONS

Military servicemembers who have suffered serious injuries resulting from their wartime service can get financial help thanks to two congressionally legislated military insurance programs.

HEART ACT

Before recessing for the 2008 Memorial Day holiday, Congress passed some new tax relief for military families. And it's all heart for military active duty, veterans, military reservists and more.