Hello! So, maybe a weird question, but if I ended up getting deployed after I joined the military, would there be any way to get a free tax extension? How does that work exactly?
To address your question about tax extensions for deployed military members, according to the Internal Revenue Service (IRS), there are indeed some specific tax provisions designed to aid Armed Forces personnel.
For tax filing and payment deadlines, an automatic extension is given to U.S. service members who serve in a combat zone during the filing season. The extension typically lasts for 180 days after the last day of combat service or the last day of continuous hospitalization due to injury from service.
There's also an extension for those deployed overseas. If you're stationed outside the United States and Puerto Rico, you're granted an automatic 2-month extension without requesting for it.
Take note though, even with extensions, interest is still applied to payments received after the April deadline. So while it offers more time to file, paying sooner could save on interest.
To avail of these, you need to inform the IRS about your status. The way to do this is to write "COMBAT ZONE" at the top of the tax return along with the date of deployment.
Also, before being deployed, it may also be beneficial to consider setting up a Power of Attorney (POA) for someone you trust to handle your financial matters, including tax filing, in your absence.
Remember to consult with a tax professional or your base Legal Assistance Officer to ensure that you meet all relevant requirements and to fully understand your responsibilities. The IRS website and publication 3 (Tax Guide for Armed Forces) also provide more details on this topic. Hope this helps!
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