8 Tax Tips for Veterans

1. Keep Recordsnew law reduced the amount of money being taken
To qualify and receive most Veterans’ taxout of American worker’s paychecks. Although
benefits, you will need to verify your status as a U.S.Veterans are not eligible for the credit, they will still
Veteran. Therefore, it is important to keep yourhave fewer taxes withheld as part of the new
records in a safe place with your other financial“one-size-fits-all” IRS guidelines. Therefore, you
documents. If you do lose any of these records, youmay be surprised to find you owe a significant tax
will need to contact the Department of Veteransliability in April.  
Affairs to obtain new ones.  5. Track your Tax Liability
2. Know About Property Tax ExemptionsBecause of the problems created by the American
There are a few types of property tax exemptionsRecovery and Reinvestment Act, as well as the fact
available to Veterans. The first is the Veterans' Realthat taxes are not withheld from military payments, it is
Property Tax Exemption that allows a qualifying Vetimport to keep track of tax liability. If you are going to
to take a partial exemption for property purchasedowe the IRS money, then you might want to make an
with eligible funds. The second is the Cold Warestimated tax payment to prevent unnecessary fees
Veterans Exemption, which exempts those whoor penalties. Alternatively, you may want to adjust your
fought in the cold war from paying property taxes.withholdings. If you feel you may end up owing taxes
However, some counties and cities have opted out ofdue to the change, you may want to consult with a
this program so be sure to check with your local taxtax preparer for the best way to counter-act the
department.  change.
Last but not least, the alternative Veterans exemption6. Check State Benefits
is available to Veterans with residential property thatIn addition to the Federal tax benefits offered to
have served during wartime and/or received anVeterans, many state and local governments offer
expeditionary medal. Similar to the Cold War Veteransbenefits as well. However, you will need to check with
Exemption, some local governments may opt out ofyour state’s tax collection agency and possibly a
offering this exemption. With any property taxlocal tax professional to find out exactly what options
exemptions you should always speak with a local taxare available to you.
professional to make sure you do not pay any taxes7. Job Search Assistance
that you are not required to.If you are a Veteran who has to go back to the
3. Taxes on Income and Retirementregular workforce, then you may be able to take
Unfortunately, any income you receive from theadvantage of a specific set of tax incentives. On your
military that is based on age or length of service isnext tax return you can deduct expenses paid for
taxable income and must be included on your taxcreating a résumé, telephone call fees to
return. However, you will usually not have the standardprospective employers, employment agency fees, and
taxes withheld from your checks like you would with aany traveling expenses related to your job hunt.  
standard paycheck.8. Free Tax Filing
4. American Recovery and Reinvestment ActMany military personnel and their families will qualify to
The American Recovery and Reinvestment Act ofreceive free online tax filing through the IRS website.
2009 provided some assistance to struggling familiesQualifying factors may change by location and
and businesses through the making work pay taxsituation so be sure to check with your local tax
credit. However, the credit unfortunately createdauthorities and the IRS.gov website for more
problems for many veterans. After it was enacted, theinformation.