Friday, July 18, 2014

IRS Summertime Tax Tip 2014-07: Special Tax Benefits for Members of the Armed Forces

IRS Summertime Tax Tip 2014-07: Special Tax Benefits for Members of the Armed Forces

Lately we have not heard much good news for our military members. The following are some key facts that taxpayers who serve, or have served within this tax year (2014), may not know. 

There are some tax breaks, and other rules that affect Active Military, ROTC, Reservists, and those leaving the service to go into civilian, that military tax filers may not know. 

Publication 3 is "The Armed Forces Tax Guide." Within this guide is important information for U.S. Military Taxpayers who are stateside, and around the world.

Some breaks for our Military personnel include:
  • If you leave the military to find work, you may be able to deduct some job seeking expenses. Some moving expenses may be deductible as well. 
  • Most military bases offer Free Tax Assistance during tax season, but there are some that offer help all year long. 
  • Active duty ROTC pay is taxable, but there are some allowances during training that are not taxable. For more information, check the quick "Life Cycle" Series Fact Sheet.
  • For Reservists traveling over 100 miles from home, who incur unreimbursed travel expenses, they may be deductible.
  • Joint Returns - Signing a joint tax return, when one member of the couple is on active duty, may give an allowance for the active military member, to waive a signature. In some cases a Power of Attorney should be in place.
  • If you are out-of-pocket expenses for uniforms you may NOT wear when off duty; cleaning and purchase costs may be deductible.
  • Active Military personnel may be eligible for automatic extensions for time to file tax returns
  • If you serve in an active Combat Zone, certain pay may NOT be Taxable, and may not need to be included as income on your tax return, BUT
  • Active Military may want to check and see if adding it to the non-taxable income section of your tax return would give a higher Earned Income Credit allowance.
Always seek the help of a certified Tax Expert who is classified as an Enrolled Agent or higher, for very complicated returns. 

Some States also have Tax Credits, Allowances and Exclusion for Military personnel, so don't forget to check that, or make sure your tax professional checks this for you.

For answers to more military tax returns, order a copy of Publication 3.

I.R.S. en Espanol

Thank you for your service, and all you do.

Wednesday, July 16, 2014

HCTT-2014-14 -- has information about the health care law and its effect on your taxes

HCTT-2014-14 -- has information about the health care law and its effect on your taxes

U.S. Taxpayers are frequently being given erroneous or completely untrue information regarding the Affordable Care Act (ObamaCare), and taxes. 

As of March 31, 2014, taxpayers who lived in States with expanded Medicaid were required to have insurance, or register for Health Care. 

It is sad and unfortunate that in many of the States, even where Medicaid was expanded, there are daily untruths, and propaganda being aired on News Stations, and Newspapers. Most of this is being paid for by Teabagger GOP, and propagated by Republicans who continue to act as if they lie long enough, it will become everyone's truth.

Come tax time, 2015 - when the filing for 2014 tax returns, the individuals and families who are going to get a rude awakening, will not have their GOP representatives to pay their fines for not complying with the law. It is my personal opinion (not shared by my employer or any other party in my area), that those who continue to lie, who are causing Americans to pass up benefits that they are entitled to, should be sued in a very large way. It is criminal enterprise, to brainwash people to give up those things that are in their best interest. 

Individual Shared Responsibility - Overview - IRS - YouTube

For those who are wanting to get to the fact of the matter, the IRS has several links to help taxpayers sort it out. There is a whole page dedicated to the ACA (ObamaCare) Tax Rules and Instructions at another shorter resource is the IRS-pdf p5093

Some Good News for those who may have missed Open Enrollment due to any number of reasons, if you have had a "Change of Life" Experience, ie; Lost a Job, Got Married, Widowed, Increase or decrease in income, you will be allowed to Enroll in the ACA plan(s) available in your State. [If that State expanded Medicaid]. Here is the link to the Health Insurance Market Place:

The thing I will never understand about the TeaBagger movement is how billionaires convinced basically poverty ridden populations to be activists for them??????? This is what I consider shooting off your nose to spite your face. It doesn't make sense, and it is a no win situation. 

Please enroll for Healthcare if you have not, and you are able to enroll due to changes in circumstances. Don't get your tax information from the News Media. Go to the I.R.S. website or an Enrolled Agent or higher for real tax advice.