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Special Tax Benefits for Military Members and Veterans: What You Need to Know

Summary of IRS Tax Benefits for Military Members and Veterans


The IRS provides valuable tax benefits to support U.S. Armed Forces members, veterans, and their families, recognizing their unique needs and sacrifices. Here’s a quick overview:


  • Combat Pay ExclusionCombat pay is partially or fully tax-free, and those serving in qualified hazardous zones may also qualify for this tax exclusion.

  • Combat Zone Tax ExtensionsMilitary members serving in combat zones or contingency operations outside the U.S. get extended deadlines for filing and paying taxes.

  • Dependency Allotment ExclusionArmed Forces dependency allotments for dependent care are excluded from taxable income, offering additional financial relief.

  • Earned Income Tax Credit (EITC)Service members with low to moderate income may benefit from the EITC, which is worth up to $7,830 in 2024. Combat pay exclusions can further increase EITC eligibility and refund amounts.

  • Moving Expense DeductionActive-duty members ordered to relocate due to a permanent change of station can deduct unreimbursed moving expenses, and allowances for these moves are non-taxable.


For further details on these benefits, military families can visit the IRS's Military Family Tax Benefits page.


This guidance aims to simplify the tax process for those who serve, offering peace of mind and financial support.


Navigating tax benefits as a military member or veteran can be complex, but you don’t have to go it alone. At Mark Sullivan Consulting, we specialize in helping military members and their families maximize their tax benefits while staying compliant with IRS regulations. With years of expertise in tax consulting and representation, we’re here to support you in achieving financial clarity and peace of mind. Let us help you make the most of these benefits – contact us today to learn more about how we can assist with your unique tax needs.


 

About the author


Mark opened Mark Sullivan Consulting, PLLC in October 2022 after a decade of tax consulting in FinTech. He is fairly new to the Phoenix area having moved here from St. Louis, Missouri in July 2020.


Mark has over 30 years of experience, including several years with the IRS as a Revenue Officer and over 16 years as director at a firm that specialized in civil and criminal tax accounting, IRS representation and forensic accounting. He has been admitted as an expert witness for civil and criminal tax cases in both State and Federal courts. Since relocating to Arizona and returning to practice, he has concentrated on tax compliance and planning for individuals and businesses, advisory and representation services.


He has an unlimited license to practice as an Enrolled Agent nationwide and is a member of the National Association of Enrolled Agents.

 


2006 Jeep Wrangler LJ

A long-time Jeep enthusiast, Mark enjoys off-roading in his 2006 Jeep Wrangler LJ around the Southwest or wherever he goes on vacation.



 

Copyright 2024 Mark Sullivan Consulting, PLLC.


Disclaimer: This article is for information purposes only and cannot be cited as precedent or relied upon in a tax dispute before the IRS.


Additional references:

IRS Tax Tip 2024-89

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