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Filing income taxes is time and again a predicament for military families who may not recognize that they are qualified for free military tax filing services. The Internal Revenue Service website has a significant section devoted to the needs of military personnel, their entitlements and obligations when filing their income taxes.
The IRS, through VITA (Volunteer Income Tax Assistance) educates military personnel on bases both in the United States of America and abroad to help military families submit their income tax papers. They are skilled with such situations as:
* Completing the military tax exempt form
* Early retirement
* The HERO (Heroes Earned Retirement Opportunities) program allowing personnel receiving combat pay only for more than 365 days to contribute to IRAs
* IRA and other retirement plan contribution limits
* Re-enlistment
* Non-taxable combat pay
* Military differential pay for reservists on active service and volunteers sent on active service immediately after training
* Economic stimulus payments for military families, and
* Tax entitlements and benefits for reserve (National Guard) members who have been on active service for 180 days or more during the current taxation year.
* Military family spouses and dependent children do not require having a Social Security numbers to qualify for these benefits.
IRA Tax Relief for Military Families: VITA volunteers can also make clear how military families can qualify for relief from the 10 percent early withdrawal penalty applied to retirement accounts.
Contact the IRS at 1-800-906-9887 to find out where the VITA volunteers are on your base during tax filing time. VITA volunteers are customarily available from the first week of March to April 30. The volunteers take a trip to the bases and secured US Armed Forces military compounds, in combat zones.
Civilians Employed in Combat Zones: Any civilian employee of the Pentagon receives a notification of action from the IRS while stationed in a combat zone should send back the mail and indicate the notice "Combat Zone" in all caps, with their date of deployment below it in red. The items should be sent back to the Internal Revenue Service. Upon receipt of this returned notice, the IRS will suspend the assessment or action.
Filing Date Extensions: VITA volunteers can also lend a hand to military families to request for a tax filing date extension. Military members are not charged for late penalties, for up to 6 months. |