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Military tax tips

November 11, 2009

Veterans Day this year is particularly poignant due to the tragedy at Fort Hood.

Please keep those who lost family and friends at the Texas base in your thoughts today, along with all our veterans who have served the United States.

Tax tips for our troops: While taxes are far down the list of concerns for members of the military, these men and women face the same tax responsibility as do all U.S. citizens.

 However, our troops do get some special tax considerations.

The latest tax break for our servicemen and women comes in the recently enacted measure that continues and expands the first-time home buyer tax credit.

Under the new law, service personnel who are on extended overseas duty or who have been on active duty for more than 90 days in 2008 and 2009 have until June 30, 2011, to use the credit.

Members of the military also won't have to repay the credit if they must sell a home because they are  deployed to another location within three years of purchasing the residence.

For more on the military and taxes, check out

The IRS also has a special Web page of Tax Information for Members of the Military, which includes Publication 3, Armed Forces' Tax Guide. Publication 3 currently is for 2008 filings; the IRS will update the document with 2009 data later this year.

State breaks, too: And when filing season rolls around, don't overlook possible military tax relief on the state level.

Minnesota, for example, has the Credit for Military Service in a Combat Zone. This state tax break is available to any member of the military who served in a designated combat zone or hazardous duty area since Sept. 11, 2001.

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Credits/Deductions
Disasters
Family
Filing and Paying Taxes
Politics/Laws
Refunds
State Taxes
Tax Brackets/Inflation
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