The Internal Revenue Service has released its newly-revised tax guide, designed to help members of the military understand the many special tax benefits available to them under the law.
Publication 3, Armed Forces’ Tax Guide, now posted on IRS.gov, is packed with useful filing tips for any member of the military, including reservists and the National Guard, regardless of whether they are stationed in the U.S. or abroad.
Among other things, this free publication describes the provision allowing armed forces reservists to deduct their reservist-related travel expenses, regardless of whether they itemize their deductions. It also describes the moving expense deduction still available to active-duty members of the military in connection with a change of station.
The publication covers the special benefits available to those serving in a combat zone, including the full or partial exclusion of combat pay and special rules for determining the IRA contribution limit. Also included in this publication are special rules for figuring the Earned Income Tax Credit for low- and moderate-income workers and families and the extended deadlines available for filing returns, paying taxes and claiming refunds.
To view or download this free publication, visit IRS.gov/pub3.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.