Whats New for Military Tax Payers
Each year brings new tax rules, this year the Internal Revenue Service has offered the following summary of the four biggest changes that may affect your tax claim.
1. Due Date Changed for Tax Returns. File your return by April 18, 2016. The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia.
2. Earned Income Credit Changes.
Amount of credit increased. The maximum amount of the credit has increased. The most you can get for 2010 is:
- $3,359 if you have one qualifying child,
- $5,548 if you have two qualifying children,
- $6,242 if you have three or more qualifying children, or
- $503 if you do not have a qualifying child.
Earned income amount increased. The maximum amount of income you can earn and still get the credit has increased for 2010. You may be able to take the credit if:
- You have three or more qualifying children and you earn less than $47,747 ($53,267 if married filing jointly),
- You have two qualifying children and you earn less than $44,454 ($49,974 if married filing jointly),
- You have one qualifying child and you earn less than $39,131 ($44,651if married filing jointly), or
- You do not have a qualifying child and you earn less than $134,820 ($20,330 if married filing jointly).
Investment income amount. The maximum amount of investment income you can have and still get the credit is $3,400.
3. Standard Mileage Rate. The standard mileage rate for the cost of operating your car for business use in 2010 is 57.5 cents a mile. The standard mileage rate for operating your car during 2010 to get medical care or to move is 23 cents a mile.
See the IRS First-Time Homebuyer Credit Fact-Sheet to learn more.
Check out the IRS's Official 2010 Armed Forces Tax Guide - created specifically to help military taxpayers.