We recently celebrated Memorial Day. Many of us kicked off summer (can you really call this summer?) with big BBQ’s, partying and spending time with family and friends. My father (DPLI) and I spent Sunday at Jones Beach watching the annual airshow. Every year I am blown by the might and capability of our military as demonstrated to some extent at this airshow. And every year I am reminded that there really aren’t words to express my gratitude to those who have fought and served for this great country we live in. I really don’t know how they do it. Selflessness, will, bravery. Some of the many, many admirable characteristics of a military man or woman. I see some of these situations where husbands, wives, moms, and dads have to leave behind their family and loved ones to deploy to combat zones with no real assurance they will ever see each other again.
Some of my favorite videos are soldiers returning home from tours of duty. Especially the ones in which they surprise their family and friends. Truly great stuff. I think to myself, if not for them, I would not have the life I have. I thank them by recognizing that every day. This past weekend we remembered those we lost by truly cherishing their sacrifice and the freedoms they have given us. Thank you to all who serve and have served. Here is a little tax knowledge for the troops:
1. Combat pay is exempt from Federal Tax. Self explanatory. If you are in a combat zone, you don’t have to pay federal taxes on the income you receive for that time period.
2. Some other non-taxed stuff for the Military. Uniform or uniform allowance, government provided moving and storage, housing allowances, certain legal expenses, certain life insurance, medical and dental care, travel allowances… all can be non-taxable.
3. Automatic Extensions. Those in a combat zone are given a 180 day extension for all tax filings and payments automatically.
4. Transitioning back to civilian life deductions. Certain moving and travel expenses, as well as certain services to find employment may be deductible for veterans transitioning back into civilian life.
There are other details including tax exemptions on property tax, adjustments to income vs. itemized deductions etc. that are available to military and vets. We will get into further detail in the coming weeks. We here at L&A support our troops and offer special discounts for veterans of our great Military. We also donate to the Wounded Warrior Project and other charities. We encourage all of our clients, friends and family to do the same. I leave you with one of my favorite video compilations of soldiers coming home. Support Our Troops. And God Bless America.