2021-171, COVID Tax Tip, November 18, 2021
The Internal Revenue Service (IRS) maintains a number of services to assist military personnel, veterans, and their families in navigating the unique and complex conditions that come with paying taxes while serving in the military. Reviewing these materials can help you prepare for the forthcoming tax season.
A list of some of these resources is provided below.
The primary website on IRS.gov for members of the military is where people may discover links to useful information, resources, and services.
The military status of a taxpayer has an impact on their eligibility for certain benefits. By going to IRS.gov, taxpayers may see if they are eligible for military tax advantages. The Armed Forces, uniformed services, and support groups are all eligible employers.
There are special rules for soldiers serving in combat zones. The IRS.gov website Tax Exemption for Combat Service has extra information for these taxpayers and their families. They should also review the earned income tax credit’s particular rules. If these factors apply to their tax position, they may be eligible for a bigger refund.
For military personnel, the Armed Forces’ Tax Guide is a thorough IRS document. This includes the following:
Military personnel stationed abroad are subject to special rules, which include deadline extensions.
Expenses for moving that were not repaid
Travel expenses should be set aside as a reserve component.
MilTax allows members of the military and qualified veterans to prepare and e-file their taxes for free. If you don’t qualify for MilTax, you can still prepare and e-file your federal taxes for free.
Through the military Volunteer Income Tax Assistance program, most military locations provide free income tax assistance. For more information, military personnel should contact their installation’s legal office. If they fulfill the income and age requirements, veterans may also be eligible for free tax assistance at locations across the country.
In the 2022 tax filing season, families that received advance child tax credit payments will reconcile those payments with the child tax credit they claim on their 2021 tax returns. If the amount of the child tax credit is greater than the total amount of the taxpayer’s advance child tax credit payments, the remaining amount of the credit can be claimed on the taxpayer’s tax return. However, if the advance payments exceed the credit, the taxpayer may be required to repay the advance payments based on the 2021 tax returns.