How Members of Military Should Plan Their Taxes

Members of the United States military have manyMarried couples filing jointly may use power of
events happen in their lives that can affect theirattorney in substitution for the signature of a spouse
personal tax situations. Here is some advice for a fewengaged in active military duty.
situations you might come across as a taxpayer in theIf you are a member of the United States Armed
military service.Forces Reserves and must travel more than one
If you are on active duty and have to move becausehundred miles to perform duties as a reservist, you
of a permanent change of station, you are entitled tocan deduct the cost of that travel on your income tax
deduct the un-reimbursed expenses incurred by youreturn.
and your family during your reassignment.ROTC students participating in advanced training and
If you serve in a combat zone for any part of areceiving a subsistence allowance do not pay tax on
month, your income for that entire month is not taxable.that allowance. Active duty pay for ROTC students,
The monthly exclusion is capped for officers at thesuch as received during summer advanced camp, is
highest rate of enlisted pay, plus hostile fire or imminenttaxable.
danger pay received.Some costs of transitioning to civilian life may be tax
Qualifying members of the military can have certaindeductible, especially those associated with looking for
tax matters postponed. For example, tax deadlines foremployment or locating to a specific area because of
filing an income tax return, filing claims for refund, andwork.
paying taxes can be extended for those in the militaryMilitary installations offer free preparation and tax filing
service.services during tax season.
If military regulations require that you do not wearIRS Tax Information Publication 3 is an Armed
certain uniforms while off duty, you can deduct theServices Guide to taxes. It is available at the IRS
maintenance and cost of those uniforms minus anywebsite.
allowance or reimbursement.