Special Tax Rules for Military Personnel

The IRS has special rules for military personnel when they prepare their taxes and here is a summary of those rules.

  1. Combat pay is excluded. You do not have to report that income from a designated combat zone.
  2. Postpone tax deadlines: If you are serving in a combat zone or contingency operations outside the US your tax deadlines differ. Normally October 15th, the extension for those who are deployed depends on when you first were deployed and when you stopped your deployment.
  3. Dependent care expenses: Are excludable benefits and not part of your income
  4. Moving expenses: This deduction is suspended in 2018 unless you are active duty and are permanently moving to another location as a result of an order. Also, any allowances paid to move members of the military to a permanent change of station are excluded from taxation

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