As you prepare to file your 2024 taxes, it’s important to know about the military-specific federal tax benefits, deductions, exemptions, and other rules that could affect your filing. You will also want to check your state’s military and Veteran tax benefits. For example, as of 2023, Indiana, Maryland, Montana, and Virginia all passed military-related tax cuts.  

Tax Refund Opportunities 

Following are several federal military-specific updates that could help reduce your tax liability and maximize your refund: 

• Dependency Allotments: Assistance you get from the government to help pay for dependent care is not included in your income and is not taxed. 
• Earned Income Tax Credit (EITC): The EITC is worth up to $7,830 for tax year 2024. If you are a low or moderate income servicemember who receives nontaxable combat pay, you can use specific qualifications that may increase the amount of the EITC for which you qualify, meaning you may owe less tax or get a larger refund. 
• Uniform and Equipment Deductions: If you're an active-duty servicemember who has purchased uniforms and equipment not suitable for civilian use, those expenses may be deductible.  
• Moving Expenses for PCS Orders: If you are a servicemember on active duty, and you had to move due to a military order and permanent change of station (PCS), you may be able to deduct unreimbursed relocation expenses, such as the cost of transporting household goods, travel, and lodging. Additionally, any allowances you received to pay for your PCS relocation aren’t taxable. 
• Combat Pay Exclusion: The pay you earned while serving in a Department of Defense designated combat zone remains excluded from federal income tax. 
• Tax Filing Extensions for Deployed Servicemembers: Active-duty servicemembers serving in combat zones automatically receive extensions to file their taxes. This extension can last up to 180 days after the last day of service in the combat zone, ensuring that you won’t face penalties for late filing.  

Tax Assistance Resources 

Filing taxes as a current or former servicemember may have specific rules you need to be aware of, such as the Military Spouse Residency Relief Act, which allows spouses to use the same legal residence as the servicemember during any taxable year of the marriage, regardless of which state they currently reside. To learn more about this act and other tax information, Military OneSource provides military-specific tax tips.  

If you need help navigating military tax laws, several resources are available to help you file accurately and maximize your benefits. Here are a few to consider: 

• MilTax: The Department of Defense offers MilTax, which includes free tax preparation software specifically designed to deal with military tax issues, and you can use it to file local, state, and federal taxes. 
• Tax Counseling for the Elderly (TCE): Staffed by trained volunteers, the TCE program offers free tax preparation services for people 60 years of age and older, and specializes in retirement-related issues. 
• Volunteer Income Tax Assistance (VITA): VITA offers free tax help to people who need assistance in preparing their own tax returns, including those making $67,000 or less and persons with disabilities. Locations are available at military installations nationwide and are staffed with IRS-trained volunteers. 

Always consult a trusted tax or financial professional if you have specific questions about your taxes.