Members of the United States Armed Forces qualify for some special tax benefits, including provisions related to moving for military service or serving in active duty.
Here are five benefits you should be aware of as a member of the military:
You do not have to pay income tax on combat pay. You also do not pay tax on many military benefits, including:
If you are a member of the troops serving overseas, you have an extra two months to file your federal income tax return. You can file your 2013 tax return any time up to June 16, 2014, without filing for an extension.
If you are serving in a combat zone, you have even more time to file your return. You are allowed 180 days from the date you return from the combat zone, or 180 days from your last date of continuous hospitalization for injuries received while serving in a combat zone. These 180 days are in addition to the number of days you had left to file the return when you entered the combat zone.
The IRS does not add interest or penalties to your taxes during this extension.
Most taxpayers must live in the United States to qualify for the Earned Income Credit. However, if you are a member of the armed forces and are stationed outside the U.S. on extended active duty, you may still qualify for the Earned Income Credit.
In the past, moving frequently for military service meant filing state income tax returns for each state in which you lived. Thanks to the Servicemembers Civil Relief Act (SCRA), you can keep your home state residence for tax purposes, regardless of where you live due to military orders. You cannot be taxed on military income by any state other than your home state. The home state you have on file with the military will withhold state income tax from your pay.
If you are a spouse of a military member, you can also keep your home state for income tax purposes.
Most people who work as employees or as self-employed individuals must pass a time test and a distance test to deduct moving expenses. If you are in the military and you have expenses for which you are not reimbursed, you can deduct qualified expenses regardless of how long you work at the new location or the distance between your old house and your new job.
March 1 — Farmers & fishermen
File your 2018 income tax return (Form 1040) and pay any tax due Details
March 10 — Employees who work for tips
If you received $20 or more in tips during February, report them to your employer Details
March 15 — S Corporations
File a 2018 calendar year income tax return (Form 1120S) and pay any tax due Details
March 15 — S Corporation election
File Form 2553, Election by a Small Business Corporation, to elect to be treated as an S corporation beginning with calendar year 2018. If Form 2553 is filed late, S corporation treatment will begin with calendar year 2019.
March 15 — Partnerships
File a 2018 calendar year return (Form 1065) Details
March 15 — Electing larger partnerships
Provide each partner with a copy of Schedule K1 (Form 1065B), Partner's Share of Income (Loss) From an Electing Large Partnership, or a substitute Schedule K1. This due date applies even if the partnership requests an extension of time to file the Form 1065B by filing Form 7004
March 15 — Partnerships
Electing large partnerships: File a 2018 calendar year return (Form 1065-B) Details
March 15 — Social security, Medicare, and withheld income tax
If the monthly deposit rule Page 6 Publication 509 applies, deposit the tax for payments in February.
March 31 — Electronic filing of Forms W2
File copies of all the Forms W2 you issued for 2018. This due date applies only if you electronically file.
March 31 — Electronic filing of Forms W2G
File copies of all the Forms W2G you issued for 2018. This due date applies only if you electronically file.
March 31 — Electronic filing of Forms 8027
File Forms 8027 for 2018. This due date applies only if you electronically file.