Tax Terms Defined for the Military

Whether you’re doing taxes yourself or getting professional support from resources like Military OneSource MilTax or the Volunteer Income Tax Assistance program, the process can be a lot easier if you understand important tax terms.

Tax definitions for military life

Be prepared for tax time with these tax definitions:

Tax Return vs. Tax Refund add
Dependent add
Taxable vs. Non-Taxable Income add
Combat Pay Exclusion add
Pre-Tax and Post-Tax Retirement Contributions add
Interest Income vs. Investment Income add
Military Extension on Capital Gains Taxes add
Moving Deductions add
Adjusted Gross Income add
Standard Deduction vs. Itemized Deductions add
Deduction vs. Credit add
Income Tax vs. Withholding add
Self-Employment Tax add
Earned Income Credit add
State of Legal Residence and Servicemembers Civil Relief Act/Military Spouse Residency Relief Act add
Qualified Reservist Distributions add

Free tax resources for the military

Make tax time easy with these no-cost tools built for the military:

  • Military OneSource MilTax is a suite of free tools to help simplify the process of filing your income tax return. It includes free tax preparation software, telephone consultation with tax professionals who understand the unique tax challenges of military families and a library of articles on common military tax questions.
  • The VITA program offers in-person tax assistance at military locations worldwide. VITA coordinators are specially trained to address military-specific tax issues like combat-zone benefits and applying Earned Income Credit guidelines.
  • Publications developed for the military, like the Internal Revenue Service’s Publication 3, the Armed Forces’ Tax Guide.

Call Military OneSource at 800-342-9647 or live chat to schedule a free appointment with a MilTax consultant or a financial counselor. OCONUS/international? Click here for calling options.