Tax rules and benefits for service members and veterans — deployment, combat pay, and military-specific tax breaks.
I grew up in coastal North Carolina. You probably know the area for its beaches, but when I was a kid, it was better known as a military hub. Within two hours of my house, there were at least seven military bases in my state: Marine Corps Base Camp Lejeune (Jacksonville, NC); U.S. Army Fort…
The Internal Revenue Service (IRS) has confirmed that recipients of VA benefits will automatically receive Economic Impact Payments (that’s the official name, although most taxpayers refer to them as stimulus checks). That means that veterans and their beneficiaries who receive Compensation and Pension (C&P) benefit payments from VA will receive a $1,200 Economic Impact Payment with no…
On Memorial Day, we’re supposed to honor our fallen soldiers. But some military families aren’t feeling very appreciated this year: Congress still hasn’t fixed the Tax Cuts and Jobs Act (TCJA) tax hit impacting Gold Star families. Gold Star families are those with an immediate family member who died while serving in the military. The term…
The Internal Revenue Service has announced that combat-zone contract workers may now qualify for the foreign earned income exclusion. Typically, if you are a U.S. citizen or a U.S. resident alien, you’re taxed on your worldwide income. However, certain taxpayers can exclude some or all foreign wages from tax under the foreign earned income exclusion. The exclusion…
The Internal Revenue Service (IRS) has announced that tax relief is available – retroactively – for veterans who received disability severance pay after January 17, 1991, and included that amount as income on their taxes. Approximately 130,000 separated military members who received disability severance pay as income may be affected. Typically, Disability Severance Pay is…
It’s my annual “Taxes from A to Z” series! Next up: V is for Veterans’ Benefits Under the Tax Code, income is reportable and taxable unless otherwise excluded. Fortunately, when it comes to veterans’ benefits, those paid under any law, regulation, or administrative practice administered by the Department of Veterans Affairs (VA) are completely excludable….
It’s Back To School Week on the blog! All week long, I’ll be answering your questions about school and tax – complete with fun giveaways. Next up: the G.I. bill provides educational assistance to veterans – but are those benefits taxable?
I’ve been part of a military family ever since I was 14 years old. My older brother (now retired military) announced that he was following in his grandfather’s footsteps and joining the Navy when I was still in high school. My younger brother (career military) followed suit a few years later, making us officially a…
My kids and I gathered today to watch our local Memorial Day parade. It is a tradition, the parade, and one that I am proud to share with my family. I did not serve in the military but I am indebted to those who did. My grandfather and my great-grandfather both served in the Navy…
Taxpayer asks: I am serving in the military in Hawaii. My wife is not a US citizen and she has an ITIN number. I’ve read on the internet, including on your blog, that I will not qualify for the stimulus check because she is not a citizen. But my CO says I will. Who is…
