TAX TIPS FOR VETERANSTax Credits, Deductions and Benefits Available to Veterans

who Served in the Armed Forces.

Don’t Forget Available Credits & Deductions

Veterans are required to file and pay taxes, but just like any other taxpayer, there are a myriad of tax benefits available to them. The Earned Income Tax Credit, credits for retirement savings, the home mortgage interest deduction, state and local tax deductions are all popular ways for veterans to lower their tax responsibility.

No Taxes on VA Disability Payments

Disability benefits and pensions received from the Department of Veterans Affairs (VA) are not taxable income and do not need to be included on a tax return. This means significant tax savings for disabled veterans.

Keep Tax Related Documents Safe

To qualify for veterans benefits, you need to be able to provide documentation that shows you are a U.S. veteran. Keep all these documents in a safe place and make copies in case of fire or flood. If you do misplace any of your important records, contact the U.S. Department of Veterans Affairs for replacements immediately.

Check Eligibility

Don’t make assumptions about what you’re eligible for. Every benefit has its own eligibility rules. Taxpayers and veterans alike can run into serious tax trouble for using tax benefits they do not qualify for. When in doubt consult a tax professional.

Check Tax Liabilities

Taxes may not be withheld from all military payments, so it’s important to be aware of your tax responsibilities. According to the IRS, prior to leaving the military, you should complete Form W-4P to make sure the correct amount of tax is withheld from payments.

Keep a Check on Tax Benefits Updates

The eBenefits and U.S. Department of Veterans Affairs websites provide information about all the benefits and resources available to veterans. Be sure to check in periodically for updates.

To Learn MoreVisit:

www.reliancetaxgroup.com

Or Call(877) 597-0153

Works Consulted: Jelinek, Mike. “The Ultimate Tax Guide for Veterans.” The Simple Dollar. TheSimpleDollar.com, 19 May 2014. Web. 22 May 2015 <http://www.thesimpledollar.com/tax-guide-for-veterans/>