Taxes in the Military

• Your W-2, issued through myPay
• 1099s, 1095s and other relevant tax forms
• Receipts for uniforms, travel and lodging
• Medical bills
• Charitable donations
• Business expenses

Estimate your itemized deductions (state and local taxes, property taxes, mortgage interest, donations to charity and qualifying medical and dental) and compare the total to your standard deduction. The IRS can help you calculate your standard deduction.

Note: Some expenses, like PCS and moving expenses, can be claimed without making an itemized claim

Deductions reduce the amount of your income that is subject to tax. Common tax breaks for service members include:

• PCS/moving expenses: Active-duty members can deduct unreimbursed expenses like travel, transport, lodging and storage.
• Uniform and gear costs: Some Guard members and reservists can deduct the cost of their uniform, maintenance costs and badges.
• Student loan interest: You may deduct up to the IRS annual limit if you paid interest on a qualified student loan.

Credits reduce your tax bill directly, sometimes resulting in a refund. Common tax credits for the military community include:

• Earned income tax credit: If you receive nontaxable military pay, you may choose to include it as taxable income if it increases your refund. Use the EITC Assistant to determine eligibility.
• Child tax credit: Helps offset the costs of raising children or paying for child care while one or both parents are deployed or on active duty.
• Lifetime learning credit: Covers costs for undergraduate, graduate or professional courses — including classes that support job skill development.
• American opportunity tax credit: Helps pay for the first four years of higher education for service members or dependents.

The IRS provides automatic filing and payment extensions for service members in certain circumstances.

• Serving overseas: If you are serving outside the United States on the regular tax due date, you automatically receive an extra two months to file and pay your federal taxes.
• Serving in a combat zone: If you are deployed in a designated combat zone, you automatically receive an extension of at least 180 days after the end of the operation or your last day in the combat zone to file and pay taxes.
• Need more time: If you do not qualify for an automatic extension or need more time, you may request a standard 6-month filing extension by submitting IRS Form 4868. Keep in mind this extends the time to file, not to pay taxes you owe.