Maximizing Tax Benefits for Active Duty Military Personnel and Veterans

As a military veteran or active duty service member, you may be eligible for a variety of tax benefits and deductions that can help lower your tax liability and maximize your refund. However, with the complex rules and regulations surrounding military tax benefits, it can be difficult to calculate your deductions on your own. At The Oasis Firm, we understand the unique financial needs that come along with military service and we are proud to offer a 13% discount on tax preparation fees for veterans and active duty personnel. Our team of experts is here to help you navigate the complex rules and regulations surrounding military tax benefits, and to ensure that you get the most out of your tax return.

Combat Zone Tax Exclusion (CZTE)

One of the most significant tax benefits available to military veterans and active duty service members is the Combat Zone Tax Exclusion (CZTE). This exclusion allows you to exclude certain income earned while serving in a combat zone from your taxable income. The CZTE applies to pay earned while serving in a combat zone as well as any hostile fire pay or imminent danger pay received. It is important to note that the exclusion applies only to the income earned while serving in a combat zone and does not apply to any other income earned.

Unreimbursed Military Expenses

Another tax benefit available to veterans and active duty service members is the ability to deduct unreimbursed expenses related to your military service. These expenses can include things such as uniform maintenance, travel expenses for training, and even military academy tuition. This can be a significant tax benefit for veterans and active duty service members, as these expenses can add up quickly and can have a significant impact on your tax liability.

Military Family Tax Relief Credit

Military personnel can also claim the Military Family Tax Relief Credit, which is a non-refundable credit for taxpayers who are members of the armed forces. This credit can be claimed by the service member, their spouse, or a dependent. The credit is $500 for each month the service member is on qualified extended duty, which is defined as being on active duty for more than 180 days or for an indefinite period. This credit can provide much-needed relief for military families, as it can help offset the costs of raising a family while on active duty.

State Tax Deductions and Property Tax Deductions

In addition to these tax benefits, active duty military personnel and veterans may also be eligible for deductions on their state taxes, property taxes, and other deductions. These deductions can vary depending on the state in which you reside and can provide additional tax savings for military personnel and veterans.

At The Oasis Firm, we understand the unique financial needs that come along with military service and we are proud to offer a 13% discount on tax preparation fees for veterans and active duty personnel. Our team of experts is here to help you navigate the complex rules and regulations surrounding military tax benefits, and to ensure that you get the most out of your tax return.