Hey y'all. I'm thinking about joining the military after high school, and I'm really curious about how our finances get handled while we're deployed. Are we given extensions to file our taxes? I want to be well-informed before I make my final decision. Thanks in advance!
Absolutely! It's crucial to know about financial implications while considering such a significant step. The IRS provides several tax benefits and extensions for active duty military personnel, particularly those serving in combat zones.
If you are serving in a combat zone, the deadline for filing your income tax return can be extended for at least 180 days following your last day in the combat zone. In addition to the 180 days, the extension also includes the number of days you had left to file when you entered the combat zone. For instance, if you were to enter a combat zone 17 days before your taxes were due (April 15 for most filers), you would have a 197-day extension (17 + 180) after you leave the combat zone.
Also, it's good to note that the IRS excludes certain combat pay from taxable income. The exclusions vary based on your circumstances and rank, but they can provide significant tax relief.
Remember that states may have their own rules regarding military personnel and income tax, so always check with your state's taxation department. It's advisable to consult with a financial advisor or a tax professional experienced in military-related matters to understand fully all the financial implications and benefits related to active duty and deployment.
Good on you for thinking ahead about these details. It's a vital part of being prepared for a potential military career.
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