If you’re in the military, here are some special tax rules for you!

Tax Tips for Military Members

Pick The Right Tax PreparerMembers of the military who want to file their own taxes should head to the government's Military OneSource website. However, if you'd rather not prepare tax forms yourself, look for tax preparers who have experience filing returns for military personnel and know how to deal with issues such as the com-bat pay exclusion.

Extra Filing Time if You're Based in a Combat Zone

Those deployed to a combat zone get an automatic extension of 180 days to file their taxes after they are reassigned from the area. In addition, pay earned while serving in a combat zone is not taxed. If you served just one day of a month in a combat zone, the entire month is tax free.

Can Deduct Unreimbursed Expenses

Like other workers, military members can deduct unreimbursed expenses related to their job that are inexcess of 2 percent of their adjusted gross income.

Select Home State Carefully.A member of the Armed Services typically moves several times during their military career. So, choose wisely when it comes to selecting a primary residence or domicile. States with no or low income taxes have the potential to save families thousands of dollars in taxes. Texas, Florida and Nevada are among a handful of states with no income tax.

Learn the Rules on Selling a HouseBecause military members move an average of every three years or so, military families who purchase a home may discover they end up selling it before they've owned it for five years. Normally, this would mean any gains earned from the property sale would be taxable. However, the government has exempted military members from the five year requirement.

Understand Your EITC EligibilityThe IRS has implemented special EITC rules for military members to allow them to designate their combat pay as taxable. Doing so may result in an EITC refund. The IRS recommends military members calculate their taxes with combat pay being taxable and non-taxable to determine which option results in the greater savings.

Keep Updated on Changes Each YearThe tax code has the potential to change every year. Current provisions may expire, while new ones are frequently added. For the latest updates, you should look to IRS Publication 3, the Armed Forces' Tax Guide. Military OneSource can also connect military members with consultants who may be able to answer their questions about the latest changes.

To Learn More Visit

www.reliancetaxgroup.com Or Call :

(877) 597-0153

LaPonsie, Maryalene. “7 Tax Tips for Military Members.” U.S. News & World Report. U.S. News & World Report LP, 11 March 2016. Web. 23 May 2016. <http://money.usnews.com/money/personal-finance/articles/2016-03-11/7-tax-tips-for-military-members>