IRS Marks National Military Appreciation Month; Free Tax Guide Focuses on Tax Benefits for Members of the Military

June 11, 2015 by Gordon Advisors

IR-2015-80, May 15, 2015

WASHINGTON — June is National Military Appreciation Month, and the Internal Revenue Service
wants members of the military and their families to know about the many tax benefits available to
them.
Each year, the IRS publishes Publication 3, Armed Forces Tax Guide, a free booklet packed with
valuable information and tips designed to help service members and their families take advantage of all tax benefits allowed by law. This year’s edition, geared to the 2014 return, is posted on IRS.gov.
Available tax benefits include:
• Combat pay is partly or fully tax-free.
• Reservists whose reserve-related duties take them more than 100 miles from home can deduct
their unreimbursed travel expenses on Form 2106 or Form 2106-EZ, even if they don’t itemize
their deductions.
• Eligible unreimbursed moving expenses are deductible on Form 3903.
• Low-and moderate-income service members often qualify for such family-friendly tax benefits as
the Earned Income Tax Credit, and a special computation method is available for those who
receive combat pay.
• Low-and moderate-income service members who contribute to an IRA or 401(k)-type retirement
plan, such as the federal government’s Thrift Savings Plan, can often claim the saver’s credit,
also known as the retirement savings contributions credit, on Form 8880.
• Service members stationed abroad have extra time, until June 15, to file a federal income tax
return. Those serving in a combat zone have even longer, typically until 180 days after they leave
the combat zone.
• Service members may qualify to delay payment of income tax due before or during their period of
service. See Publication 3 for details including how to request relief.
Service members who prepare their own return qualify to electronically file their federal return for
free using IRS Free File. In addition, the IRS partners with the military through the Volunteer Income
Tax Assistance program to provide free tax preparation to service members and their families at
bases in the United States and around the world.