Tax Deferment for Deployed Military

Hey guys! Need a bit of insight here as I am about to graduate HS. I've heard that members of the military who are deployed can defer their taxes? Is there truth to this? Could someone elaborate or point me in the right direction to learn more about this process? I'm considering enlisting after high school and want to know all the details!

Yes, it's accurate that members of the U.S. armed forces who are serving in a combat zone or hazardous duty area can often defer their tax obligations until they are no longer in these areas. This is governed by Section 7508 of the Internal Revenue Code.

Essentially, this legislation allows military personnel an extension of at least 180 days after they leave the combat zone or hazardous duty area to file and pay any taxes. This deadline can be extended even further depending on the service member's circumstances. This law also applies to military personnel who are hospitalized as a result of their duty in a combat zone or hazardous duty area.

Moreover, penalties and interest for late payment will generally not be charged during this deferment period. This can be a significant financial relief for deployed military members.

Just remember, tax laws can be complex and it might be a good idea to consult with a tax professional or financial advisor to understand all the specific rules and regulations. And make sure to inform the IRS about your deployment by letter, along with the proof of service in a combat zone or hazardous duty area.

Another key piece to understand is that this deferment is not automatic: you need to request it from the IRS. It's always good to be proactive about handling your finances, especially when serving.

So yes, this is one small part of the financial aspect of military service. There's a lot more to it and you should definitely do thorough research or consult with a professional to ensure you have a complete understanding of both the benefits and responsibilities associated with enlisting.