(PRWEB) March 23, 2013
Tax Breaks for Military Members
Veterans and their families can get unique tax breaks summarized in IRS Publication 3, Armed Forces Tax Guide. Some of the more popular benefits include:
1. Automatic deadline extension for filing or paying taxes for military members serving in a combat zone or those whose qualifying service is outside a combat zone.
2. Deduction of reasonable out-of-pocket moving costs for active duty members with permanent change of station.
3. Deduction of certain military-related travel expenses, such gas used to report for Reserve Duty that is more than 100 miles from home.
4. Deduction of unreimbursed uniform costs if service regulations don’t permit off-duty uniform attire.
5. Exclusion of “combat pay” from reported income on tax returns of Armed Forces members serving in combat zones.
The Department of Veterans Affairs provides several sources for veterans to receive free tax help. Volunteer Income Tax Assistance (VITA) helps taxpayers who are in the low- to moderate-income bracket, elderly, disabled, and/or have limited understanding of English. Tax Counseling for the Elderly (TCE) assists taxpayers who are 60 and older. Free electronic filing is available on most VITA and TCE sites. Many VITA and TCE sites have IRS-certified volunteers to help with tax returns.
iFreedom Direct’s Veterans’ Advocate, Valery Behr, says, “Tax season is a stressful time for many citizens, so we want to help our servicemembers find access to the resources and benefits available to them.”
Tax-Advantages for Homeowners
Owning a home can open the door to several tax benefits for veterans and civilians alike. Typical ways homeowners can potentially lower their tax bill include deducting up to 100% of the following:
1. Mortgage Interest (even on increased principal from VA cash-out refinance for debt consolidation)
2. Discount Points (even if seller pays)
3. Origination Fee (even if seller pays)
iFreedom Direct® provides federally-backed mortgages through the Department of Veteran Affairs VA home loan program. Veterans’ mortgages are available to eligible military members and certain surviving spouses. To learn more about the company or inquire about a VA loan so that you may benefit from homeownership tax advantages in the future, visit http://www.directvaloans.com.
Disclaimer: The information provided in this posting is for educational and informational use only. This posting is intended to highlight potential tax benefits of homeownership, and is not tax advice. Readers should consult a qualified tax adviser about what is best for them,