Active Duty Tax Credit | Services (2024)

FAQs

Are there tax credits for active duty military? ›

Earned income tax credit: Special rules allow military members who get nontaxable combat pay to choose to include it in their taxable income. One reason they might do this is to increase the amount of their earned income tax credit. People who qualify for this credit could owe less tax or even get a larger refund.

H&R Block supports the military by providing access to free returns to service members through Military OneSource. No income restrictions apply. Additional products and services, such as Tax Identity Shield and Online Assist, are not available.

The Tax Credit for Reserve and National Guard Members Called to Active Duty is also referred to as the Active Duty Tax Credit. This credit excuses reserve military service members from paying Philadelphia property taxes while they are called to active duty outside of Pennsylvania.

MilTax is a suite of tax services available for members of the military, as well as qualifying veterans and family members. There are no income limits. MilTax includes tax preparation and electronic filing software, personalized support from tax consultants and current information about filing taxes.

Are military haircuts tax deductible? No, there's no deduction for a military haircut. What is the military mileage rate? MALT, or Monetary Allowance in Lieu of Transportation is only paid for when you and your family are moving for a permanent change of station (PCS).

Enlisted active duty and reserve military can use TurboTax Online for free. In honor of our nation's military personnel, all enlisted active duty and reserve military can file free extensions and federal and state tax returns with TurboTax Online using the TurboTax Military Discount.

Military Free File Offer

If you don't qualify, your Federal return is free and State filing is $14.99. Click Start Now to begin. *In order to qualify for the free offer as a member of the military, you must have 2023 wages on a W‑2 from an active duty military employer.

The primary allowances for most individuals are BAS and BAH, which are tax-exempt. Conus COLA is one allowance that is taxable. A law change mandated that every allowance created after 1986 would be taxable.

Active Duty. Full-time duty in the active service of a Uniformed Service, including full time training duty, annual training duty, full-time National Guard duty, and attendance, while in the active service, at a school designated as a Military Service school by law or by the Secretary concerned.

What is creditable active duty service? ›

Final Pay Plan

The years of creditable service for an active duty retirement calculation is the sum of years of active service (i.e., active duty or full-time National Guard duty) and any additional years computed by adding all reserve points, if any (except those for active service)and dividing by 360.

The SCRA applies to the following servicemembers: Active duty members of the Army, Marine Corps, Navy, Air Force, and Coast Guard; Members of the Reserve component when serving on active duty; Members of the National Guard component mobilized under federal orders for more than 30 consecutive days; or.

H&R Block partnership with Military OneSource

No income restrictions apply. Additional products and services, such as Tax Identity Shield and Online Assist, are not available. Learn more about Military OneSource and log-in to access services at Military OneSource.

Combat service

If you serve in one of the combat zones recognized by the IRS, you may be able to exclude combat income from taxation. You may also want to see if special EITC rules apply that could lead to a larger refund.

The Golden State is known for high taxes, and when it comes to military retirement benefits, California is the most expensive state in the country. That's because it is the only state in the U.S. that fully taxes military retirement pay.

You may qualify for a California tax exemption under the MSRAA if all of the following apply: You're not in the military. You're legally married to the military servicemember. You live with your military spouse/RDP.

This means that eligible military members may exclude their capital gains as long as they occupied the primary residence for two of the previous 15 years. There are special limitations for situations in which a homeowner moves back into a previous rental property.

You may also be eligible to claim a federal tax refund if you received: A lump sum disability severance payment that was counted as income. An increase in disability percentage from the Department of Veterans Affairs.

The military provides notable compensation benefits, ranging from paid leave days to retired-pay plans that beat those which many private sector employers offer. It also offers free or reduced cost housing, a host of special and incentive pays for qualifying conditions, free financial and tax consultations and more.