Members of the military may qualify for tax benefits from the federal government. Special IRS rules apply to military members on active duty, including those serving in combat zones. They can help lower your federal taxes and make it easier to file your return. These include deadline extensions, combat pay exclusions, earned income tax credit, deductions for moving expenses, uniforms and reservist travel. Additionally, educational and subsistence allowances paid to students enrolled in ROTC are not taxable, although active duty pay is. Military members who are discharged may also be able to deduct some of the expenses associated with transitioning back to civilian life, including the costs of job hunting, travel, resume preparation and job placement agency fees and moving expenses. Visit www.IRS.gov for more information.
