So I'm a junior seriously contemplating joining the military after graduation. But I've been hearing a lot about getting tax breaks or free extensions when you're deployed. Can anyone give me the gist? I heard there's an IRS form involved, is it Form 4868 or am I getting it all mixed up?
Certainly, let's shed some light on the topic. The IRS does offer tax-related benefits for active military personnel. Firstly, regarding the free extensions, if you're serving in a combat zone or in direct support of a combat operation, you have at least 180 days after you leave the combat zone to file and pay your taxes.
Moving on to tax breaks, one of the main benefits is that you can exclude certain combat pay from your income, which decreases your taxable income and hence can lower the total amount of taxes you have to pay.
The IRS form involved here is not 4868. Instead, military personnel typically use Form 1040, which is the standard income tax return form. However, if you're excluding combat pay from your income, you might also need to fill out Form 2555 or 2555-EZ, which are used to report foreign income. Active military also have certain other benefits like deductions for moving expenses, travel expenses, and uniform expenses.
Remember that taxes are a technical area and you should consider seeking advice from a tax advisor. While I've given you an overview, it's still a good idea to read IRS guides or talk with a tax professional to better understand how these rules apply to your particular situation.
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