![]() ![]() Service members may want to consult with their installation's legal office to see if a power of attorney is right for them. However, if military service prevents that from happening, one spouse may be able to sign for the other or get a power of attorney. Joint return signatures: Both spouses must normally sign a joint income tax return.Also, taxpayers can use their 2019 earned income to figure their 2021 earned income credit if their 2019 earned income is more than their 2021 earned income. People who qualify for this credit could owe less tax or even get a larger refund. One reason they might do this is to increase the amount of their earned income tax credit. Earned income tax credit: Special rules allow military members who get nontaxable combat pay to choose to include it in their taxable income.Those who qualify can get automatic extensions of time to file and pay their taxes. Deadline extensions: Some members of the military – such as those who serve overseas – can postpone most tax deadlines.To deduct these expenses, the taxpayer must be a member of the Armed Forces on active duty and their move must be due to a military order or result of a permanent change of station. Moving expenses: Some non-reimbursed moving expenses may be tax deductible.Other nontaxable benefits: Base allowance for housing, base allowance for subsistence and uniform allowances are among several government pay items excluded from gross income, which means they are not taxed.There are limits to this exclusion for commissioned officers. This also applies to people working in an area outside a combat zone when the Department of Defense certifies that area is in direct support of military operations in a combat zone. Combat pay exclusion: If someone serves in a combat zone, part or all of their pay is tax-free.Here are some of these special tax benefits: Special rules may lower the tax they owe or allow them more time to file and pay their federal taxes. ![]() For example, they don't have to pay taxes on some types of income. Members of the military may qualify for tax benefits not available to civilians. ![]()
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