Resources for Military to Thrive this Tax Season

military tax resources

Tax season is here! This dreaded time of the year doesn’t have to be so bad, especially for military families. Military and their families get to take advantage of free tax filing, free access to tax consultants, special tax exemptions, and when eligible, extra time to file. Now that the military W-2 forms are out, it’s a good idea to explore these military tax resources and prepare to file your 2018 tax return.

List of Military Tax Resources

Here’s a list of tax resources for U.S. Military.

Free Military Tax Assistance & Filing

Military and their family have earned the benefit of free access to tax consultants and financial advisors with military expertise. This free assistance is available online as well as at CONUS/OCONUS Volunteer Income Tax Assistance locations (VITA).  These advisors are trained to help military personnel, therefore, they know what to look for to get every deduction as well as ensure that nothing gets left out.

This is probably the most important benefit that all military should take advantage of. Paying a professional to prepare your tax filing can conservatively cost around $250, and most civilian financial advisors aren’t experts when it comes to rules and exemptions that apply to military.

Even if you want to prepare your filing on your own, you can utilize this resource by having them double check your work to ensure that you didn’t miss anything.

TurboTax Military Discount (& Free For Some!!)

** UPDATED ** 

It has recently come to light that while there is free filing available through TurboTax, they’re making it difficult for military families to utilize the free service and effectively directing users to a paid feature.  To read more, please go here.

TurboTax also offers military discounts for military e-filing their taxes. Service members in ranks E-1 to E-5, can file both federal and state taxes for FREE with the TurboTax Online Free Edition or Online Deluxe offerings.

E-6 and above receive a $5 discount on all TurboTax federal products.

Free Federal Tax Filing

The IRS provides free federal tax filing. Depending on your income, you might also be eligible to take advantage of free state filing options as well.

Individuals with an income less than $66,000 can utilize the free online software and file online. Individuals with an income above $66,000 have free fillable forms available to them.

RELATED: Free Tax Filing for Military

Military Tax Exclusions

Military personnel and their families also have a lot of different exclusions they can take advantage of when filing their taxes. If you want to learn a lot about filing your taxes, reading through the Armed Forces’ Tax Guide will be extremely informative and helpful.

Different things to consider that correlate to an exclusion/adjustment include:

  • Travel Expenses
  • Moving Expenses
  • IRA Contributions
  • Income for Armed Forces members in combat zones
  • Do you have children?
  • First-time homebuyers

Spouses Can Choose State Residency

A new law took effect on Dec. 31, 2018 that allows military spouses to take their service member’s legal residence for state and local tax purposes, as well as to vote. This could significantly help some couples’ tax burden this year and moving forward. To read more, go here.

The law applies retroactively to all taxes paid in 2018 so families that choose to take advantage of this new law could see significant refunds.  

Extra Time to File Your Tax Return Available

Extra time to file your tax return may be allowed if you are stationed abroad or are in a combat zone during the tax filing season. To find out if you qualify, reach out to your nearest VITA location or explore the Armed Forces Tax Guide here.