Alright people, question for you. I know that being in the military and getting deployed can affect your taxes (and not just because you suddenly have to find a way to do them from a tent in the desert), but can I get a tax break or something from being deployed? Really trying to understand how this works so any advice would be appreciated!
Yes, deployment can absolutely impact your taxes and potentially result in big savings, depending on your circumstances. Here are some key points:
1. Combat Pay Exclusion: If you serve in a combat zone, the military pay you receive for any month spent there is generally tax-exempt. This not only includes base salary, but also reenlistment bonuses if the extension of your enlistment terms occurred in a month you served in a combat zone, and more.
2. Tax Deadline Extensions: Being deployed often grants you extensions on your tax-filing deadline. Typically, you are allowed an extra 180 days to file returns and pay any taxes due, starting from the last day you are in a combat zone or the last day of any continuous hospitalization for injuries sustained in combat.
3. Homestead Exemptions: Some states offer military service members a homestead property tax exemption, which could reduce your property tax obligations.
4. Sales Tax Breaks: While not directly related to income taxes, taking advantage of sales tax breaks offered by some states can result in some savings.
These are general guidelines and your specific circumstances may vary, so I recommend consulting a trained professional who can help you navigate the ins and outs of filing taxes while deployed. Also, resourceful tools such as an online tax estimator or a military tax guide provided by the IRS can be used to understand how your taxes might be impacted by a deployment.
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