For regular citizens, the fiscal cliff deal brings lots of changes to how our taxes will be calculated.
If you purchased body armor [or other personally procured protection equipment] for combat duty, the entire cost (including shipping) is tax deductible. You or your spouse must have purchased it; if other friends or relatives purchased it, there's no deduction.
To deduct the armor, you must itemize your deductions. The deduction goes as an itemized deduction on Schedule A, which attaches to your Federal Form 1040. Only the amount of the cost which is more than 2 percent of your Adjusted Gross Income (in most cases, this is yours "and, if married, your spouses" combined salaries and wages).
For example, suppose you spend $2,000 for body armor, and you are single with service wages of $30,000. Your deduction is $2,000 minus $600 (or 2 percent of $30,000) or $1,400.
Besides body armor, anything else you purchase which helps you perform your service job better is tax deductible. This includes any equipment, or articles of clothing which would not be suitable for general civilian wear.
Visit the IRS website to learn more about deducting "Employee Business Expenses."
Once the VA has granted your disability, an entitlement letter will be provided that outlines the percentage of disability and monthly compensation amount granted.
With tax season in full swing, you should take note of the many deductions and credits available to you because of your military service; whether on active duty or on reserve.
Although going back to school can be a pricey venture, military servicemen and women should keep in mind that their military status makes them eligible for certain education benefits.
Let's face it -- the American tax system isn't known for its simplicity. And the confusion factor just climbs higher when you lived or worked in more than one state during the year.
Servicemembers who recently enrolled in continuing education programs or signed up for skills building classes, have several government reimbursement programs and income tax benefits that can help ... more
To deduct moving expenses, you generally must meet certain time and distance tests. However, if you are on active duty and you move because of a PCS, you do not have to meet these tests.