Deployment and Income Taxes for Military

I'm kinda new to deciphering this whole tax ordeal. Im helping out my brother who is deployed and in the military. How does he deal with income taxes? Any resources or advice would be really helpful!

Certainly! When it comes to military personnel and taxes, the process varies in a few ways from civilians.

First, it's important to know that military pay earned when your brother is serving in designated combat zones is generally excluded from taxable income, thus reducing his overall tax. The Internal Revenue Service (IRS) website provides guidelines on which zones qualify for this tax exclusion.

In addition, the IRS provides certain extensions for filing and paying taxes for members of the military. If your brother is serving in a combat zone, he generally qualifies for an extension of at least 180 days after he leaves the combat zone.

As for the logistics of filing taxes for military personnel, many military bases offer tax preparation services, and the IRS offers free tax software for military members. Usually, the necessary tax form for military personnel, similar to civilians, is the Form 1040. The exact supporting forms and paperwork your brother will need will depend on his specific tax situation.

Do note that, depending on your brother's state of residence, he may still be required to pay state taxes. Some states do not tax military wages at all, while others offer various forms of relief.

Ensure that you and your brother thoroughly read through the IRS's resources for Armed Forces Tax Benefits. It provides a comprehensive view of the different scenarios and how to navigate through them.

Remember that talking to a tax professional with experience in military taxes can be really beneficial given the complexity of this issue. It's always better to get it right, especially when dealing with military specifics.