Filing taxes is no piece of cake as it is. Things become a little more complex when it comes to military taxes. For instances you may have a record of everything that you earned in the military in order but you might have a hard time understanding which compensations that you received are taxable or not. Here are thing to keep in mind when you are working on your tax preparation in Lake Nona FL as a military man.
Where Do You File Them
In determining where you need to file your taxes, know two basic things. a) Your permanent residence address and b) your SLR (state of legal residency). Wherever you have lived in the past year from the two places, file accordingly. However if you are stationed on active duty inside the United States but away from your residence then you get to file for tax returns based on where you are stationed instead of the your home.
The deadline for filing tax returns is not the same for every person in the military. For most people the deadline is April 15 but if you are stationed outside the United States then you are given an extension of around two months.
Housing and moving costs are treated depending on whether you are on active duty or not. If you have been tasked to a new station permanently then the money that the military gives you for your move and the basic allowance that you receive is not part of the taxable income.
The Deductions and Credits That You Benefit From In the Military
Most of eth military uniforms are never tax deductable, except for uniforms that cannot be worn off duty.
Child Tax Credit
Child tax credit is another advantage that you can make use of. You are eligible for a child tax credit for up to $1000 for every child under 17 years old.
Tax Credit on Education
If a dependent of yours is pursuing their studies then the tax credit can take a load off the tuition.
Charitable donations can qualify for deductions as well if you simply itemize your taxes. Deductions can qualify from anywhere from 20 to 50 percent of your gross income. Also, most people forget to keep the receipts for these, do not make this mistake.
There are certain retirement plans that you have access to in the army. You are also able to claim deduction on your contributions to a separate retirement account.
If you are a veteran who receives disability benefits then you are able to exclude all those earnings from your gross income. Disability benefits incorporate pension payments, grants, and dependent care. For some federal tax credits it does not matter whether you have a disability or not.
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