Scroll to Top
Tax

Military Family Tax 101: Translate Credits & Deductions Into Dollars

By newadmin / Published on Thursday, 08 Feb 2018 08:55 AM / No Comments / 3 views


<div _ngcontent-c20 innerhtml="

shutterstock

(Credit: Shutterstock)

Now your preparer is validated, the extension or Power of Attorney is obtained (if applicable), and you know no one is running into the nearest quick tax filing center to claim themselves as you. You are ready to file, and there are two additional parts of military taxes Kristen Morgan, shares some information on. Credits and deductions for military families can be a little nerve-racking, but then anyone who files a return&nbsp;should be aware of they can use and what they can’t to try and maximize the biggest refund. Or if you are like my household, just being okay with breaking even.

Childcare expenses.&nbsp;These are deductible; however, you must have the Federal Identification Number (FEIN) or the Social Security Number of the person being paid to watch the child(ren). There is another reminder here which is also very important. When you claim the payments you make as expenses, the person who receives them must claim those payments as income. Making sure to receive a receipt and itemized sheet of payments at the end of the year can help ensure the correct is calculated.

Contributions IRA/Roth IRA.&nbsp;The new words on the street for military members is Blended Retirement System (BRS), and where I plan to go into a little more depth with the excitement and options of this process, for the sake of this article is you need to know what your benefits are. Since the Retirement Savings Contribution Credit is based on income, many things are configured in absolute terms. Having a tax preparer with a good understanding and being to educate self to ask questions is vital. Another form of information is a retirement chart of the irs.gov website.

Extra Income.&nbsp;In some cases, military families may have someone in the household may be working more than one job. Of if you are like me, I worked previously full time, and incurred expenses which could be written off. Now the first thing I will say is SAVE every receipt and take them to your preparer. They will understand the tax laws and can help maximize the deductions for things like milage. Accurate record keeping is imperative.

Education.&nbsp;This particular category is a large one on its own. Again this is why it is essential to know and have your preparer understand the laws. In my household this tax&nbsp;season, we have myself and our daughter attending college. Because there are different credits which are similar for&nbsp;both us, but then some are different based on me being distance and her being local. The American Opportunity Tax Credit is a very underknown credit that can be beneficial. Again research wins out.

I will refrain from going into depth with more familiar credits like Earned Income Credit. The most prominent takeaways with EIC are to remember this credit is based on income, marital status and number of children. Where there is there is a blended family, parties need to be upfront and honest on who may cover most of the care of dependents and discuss who will claim those dependent on their return. As you can see, there is a lot of information available to help make proper decisions based on the military member home. Be diligent and informed, it can make a huge difference.

“>

shutterstock

(Credit: Shutterstock)

Now your preparer is validated, the extension or Power of Attorney is obtained (if applicable), and you know no one is running into the nearest quick tax filing center to claim themselves as you. You are ready to file, and there are two additional parts of military taxes Kristen Morgan, shares some information on. Credits and deductions for military families can be a little nerve-racking, but then anyone who files a return should be aware of they can use and what they can’t to try and maximize the biggest refund. Or if you are like my household, just being okay with breaking even.

Childcare expenses. These are deductible; however, you must have the Federal Identification Number (FEIN) or the Social Security Number of the person being paid to watch the child(ren). There is another reminder here which is also very important. When you claim the payments you make as expenses, the person who receives them must claim those payments as income. Making sure to receive a receipt and itemized sheet of payments at the end of the year can help ensure the correct is calculated.

Contributions IRA/Roth IRA. The new words on the street for military members is Blended Retirement System (BRS), and where I plan to go into a little more depth with the excitement and options of this process, for the sake of this article is you need to know what your benefits are. Since the Retirement Savings Contribution Credit is based on income, many things are configured in absolute terms. Having a tax preparer with a good understanding and being to educate self to ask questions is vital. Another form of information is a retirement chart of the irs.gov website.

Extra Income. In some cases, military families may have someone in the household may be working more than one job. Of if you are like me, I worked previously full time, and incurred expenses which could be written off. Now the first thing I will say is SAVE every receipt and take them to your preparer. They will understand the tax laws and can help maximize the deductions for things like milage. Accurate record keeping is imperative.

Education. This particular category is a large one on its own. Again this is why it is essential to know and have your preparer understand the laws. In my household this tax season, we have myself and our daughter attending college. Because there are different credits which are similar for both us, but then some are different based on me being distance and her being local. The American Opportunity Tax Credit is a very underknown credit that can be beneficial. Again research wins out.

I will refrain from going into depth with more familiar credits like Earned Income Credit. The most prominent takeaways with EIC are to remember this credit is based on income, marital status and number of children. Where there is there is a blended family, parties need to be upfront and honest on who may cover most of the care of dependents and discuss who will claim those dependent on their return. As you can see, there is a lot of information available to help make proper decisions based on the military member home. Be diligent and informed, it can make a huge difference.

Let’s block ads! (Why?)



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *