Wednesday, December 7, 2016

Tax Breaks for Military Members

If you serve in the military, then you’ll be glad to know that the IRS rewards your service with many excellent tax breaks, which can help you to save a lot of money! Here are just a few of many tax breaks that may make a positive difference in your life. 

The Residency-Based Tax Break

To start off with, one nice thing is that, if you declare residency in one state, and then, due to your military service, get transferred to another, you can keep your residency if you prefer. This can really come in handy if you had residency in a tax-free state and get transferred to a non tax-free state. This really nice benefit extends not just to service members, but to their spouses as well, so it’s definitely worth taking advantage of!

The Moving Expenses Tax Break

One unfortunate part of being in the military is that you often have to pick up and move at a moment’s notice. If that does happen to you, though, you can deduct your moving expenses from your taxes. That includes any and all costs incurred as a result of the move, such as the cost of a moving truck or even what you paid for boxes to pack your stuff in!

Uniform Costs Deductions

In the military, you have to wear a uniform for most jobs. Well, if those uniforms aren’t going to be worn anywhere else, you can deduct their cost from your taxes! You can also deduct any costs related to cleaning them, replacing them, repairing them, and other relevant costs, so keep track of any and all spending related to your work uniforms.

These are really just a few of many deductions you can enjoy as a military member, so take full advantage of them and be sure to ask your accountant about other deductions that may apply.