3 Tips for Tax Time
According to the old Army cadence, “They give you a $100 and take back $99.” April 15, tax deadline day, is quickly approaching and hopefully you can get some of the $99 back.
Personally, I was fired from doing our personal income taxes a couple years ago after failing to mail our payment to the IRS. In my defense, I did the return, wrote the check, addressed the envelope, and put the postage on it. Unfortunately, it didn’t make it from my desk to the mailbox.
That was an expensive lesson to learn, although I’m not that sad about no longer being “in charge” of the tax filing…
Which category do you fall into? Are you procrastinating because you moved last year and don’t remember where you put all the receipts and other important tax papers? Or, are you the organized person who is the first person in line the day your installation tax center opens?
If you’re like many and procrastinating or finding that frequent moves cause confusion at tax time, these tips and resources might help this year and in the future:
Organize your papers
Military families may face multiple moves during the same tax year, so when tax season arrives, it reduces stress to have all of your documents in one place. A military spouse told me the best advice she could give another military spouse was to “keep your documents organized.”
Creating a yearly tax file can help ease the worry of filing a return. A simple pocket folder or an accordion file can help keep track of tax documents throughout the year. My personal favorite is this style of folder.
Also, you should read this AWN column by USAA on the top tax deductions to consider before you begin your tax return.
Moving expense deductions
While PCS moves are paid for by the Army, there may be some out-of-pocket expenses you can claim on your tax return. FrontDoor.com outlines expenses that can and can’t be claimed. As always, consult with a tax service provider for complete details.
Free tax services
The military community has several free resources available for service members, veterans, and dependents. Most installations offer free assistance with tax preparation through their Legal Assistance Offices. For individuals that want to file on their own, militaryonesource.com offers a free, online service. If you have any questions, always ask a professional.
And, if you owe money, don’t forget to send the payment!
What tax tips do you have to share? Let us know in the comments.
