Tax benefits may be available to honor America’s military veterans
Happy Veterans Day! From all of us at TaxSlayer, thank you to our military veterans and active-duty service members for serving our nation.
To salute our heroes today, we are bringing you some special tax return information for veterans. Let’s take a look.
Veterans receiving disability benefits from the U.S. Department of Veterans Affairs should not include the payments in gross income. This includes disability compensation and pension payments for disabilities paid to veterans or their families; grants for homes designed for wheelchairs; grants for motor vehicles for veterans who lost their sight or the use of their limbs; or benefits under a dependent-care assistance program.
Federal tax refunds may be available if a disabled veteran’s percentage of disability from the VA increased or a combat-disabled veteran was granted Combat-Related Special Compensation after an award for Concurrent Retirement and Disability. An amended return is required. Visit irs.gov for more information.
Disabled veterans may be eligible for the Earned Income Tax Credit for low- to moderate-income working individuals and families. Additionally, the Volunteer Income Tax Assistance Program is available for individuals requiring free help to prepare income tax returns.
Active-duty service members are also eligible for some tax benefits. Military who serve in a combat zone can exclude certain pay from their income and may receive a filing extension. For more information, consult IRS Publication 3 (Armed Forces’ Tax Guide).
We hope our veterans and service members enjoy the day! Share this information with a special veteran in you life.