Register now for better personalized quote!

Tax guide for veterans: How to maximize your return

Apr, 12, 2022 Hi-network.com

As a veteran, you can take advantage of specific benefits to maximize your return when you file your income taxes. By identifying which types of pay and compensation are exempt from taxes, you'll know what is excluded from your gross income on your return.

Eligibility for veteran tax benefits

For tax purposes, a veteran is an individual who has served at least 24 continuous months in active duty and was not released with "dishonorable" status upon discharge. However, if you enlisted before September 8, 1980, no minimum length of service is necessary to be considered a veteran.

"Active duty" or "active services" means you've served full-time as a member of the Army, Navy, Air Force, Marine Corps, Coast Guard, or as a commissioned officer of the Public Health Service, the Environmental Services Administration, or the National Oceanic and Atmospheric Administration.

It's important to note that a veteran is a former member of the armed forces who has been discharged, whereas someone on active duty is still an active member of the armed forces. Each distinction works differently for tax purposes.

Who else is eligible for veteran benefits?

In addition to veterans themselves, family members may be entitled to benefits. Qualifying family members may include:

  • Spouses
  • Children
  • Parents

Per the VA.gov website, not all family members are eligible for all veteran benefits, and some benefits are only available in certain circumstances.

6 tax tips for veterans

Tip#1: Take advantage of free tax services.

There are plenty of resources that provide free tax filing services to veterans. Some of the best tax software on the market also include tools to help veterans claim eligible tax benefits. The IRS website also links to several tax services that veterans and other taxpayers can take advantage of. As a veteran, you may qualify for free financial coaching. You may also qualify for free tax preparation services through The Volunteer Income Tax Assistance (VITA) program, and you can file income taxes for free through the IRS website using their free tax filing software.

Tip#2: Don't forget about credits & deductions available to everyone.

Just like any other tax-paying individual, you may be able to take advantage of certain tax incentives. For example, if you've searched for a job, you can deduct expenses in next year's tax return for things such as creating a r

tag-icon Hot Tags : Our process Finance Taxes

Copyright © 2014-2024 Hi-Network.com | HAILIAN TECHNOLOGY CO., LIMITED | All Rights Reserved.