U.S.

December 5, 2013

Prepare now for tax season, DOD official advises

Terri Moon Cronk
American Forces Press Service

WASHINGTON (AFNS) — With a month left before the start of tax season, service members should begin gathering documentation to file their 2013 taxes, said the director of the Pentagon’s office of family policy and children and youth said.

In a recent interview with American Forces Press Service and the Pentagon Channel, Barbara Thompson suggested visiting the Military OneSource website for tax filing resources, and to learn what will be necessary to file, such as W2 forms, Social Security numbers and receipts for deductions such as child care, education, medical expenses and donations, among other write-offs.

Tax preparers at Military OneSource will do short-form tax filing free of charge for service members and their families, Thompson said.

Relocations and deployments have tax implications, Thompson noted. For example, deployed service members can receive an extension to file taxes after the normal April 15 filing date.

“It’s very helpful to have someone who is experienced to help you through the cumbersome issue of taxes and tax returns,” she added.

The tax preparers at Military OneSource are up to date on changes in tax laws, and can answer military-specific questions, Thompson said.

Installations also offer volunteer income tax assistance to service members and their families, while certain banks and credit unions provide education and training on tax preparation, Thompson said. She advised that service members organize their taxes by starting a file beginning each Jan. 1 for the following year’s tax papers, such as receipts and other write-offs.

“You don’t want to wait until the last minute,” she said.

Service members and families who prepare long-form taxes with deductions such as mortgages and rental properties might want to consider hiring a tax expert to file for them, Thompson said.

“It’s best to get advice to make sure you have everything covered,” she added.

Additionally, people who do their own taxes need to stay on top of current tax information, Thompson said. “Sometimes tax laws change, so you have to be really smart about doing your own taxes,” she added.

States’ tax laws often vary, too, and because of relocations, some service members have to file local taxes in more than one state, she added.

“That’s where (tax consultants) can really be of great value to make sure you know what the requirements are for states,” Thompson said.

Filing federal and state tax returns usually results in either a tax return or money owed back to the government. Expecting to receive a tax return, but instead finding out that money is owed can be a shock, Thompson said. Looking at W2s to determine how much money in taxes is being withheld is a good indicator of whether or not one will owe money.

Service members who receive a tax return face important decisions on what to do with the money, Thompson said.

“Do you use it to buy down debt, or put it in a savings account?” she asked, advising people to not blow their tax refunds in a spending frenzy of unnecessary purchases.

A tax return is also well-spent in a retirement savings account, she added.

“It’s important to think about what you’re going to do with that money and how you can best utilize it for your financial well-being,” she said.

Meeting with a financial planner to learn the “lay of the land,” and what tax deductions might apply to a service member’s finances is a good idea, Thompson said. “It’s really important to be savvy about that.”




All of this week's top headlines to your email every Friday.


 
 

 
DoD

DoD takes steps to aid absentee voters

WASHINGTON – As the Nov. 4 midterm election nears, Defense Department officials are taking steps to ensure absentee voting is even easier for service members, their families and overseas citizens via FVAP.gov. In coordination with the military services and State Department, Absentee Voting Week begins today, aiming to raise awareness and remind voters of important...
 
 

New EPR challenges status quo

LUKE AIR FORCE BASE, Ariz. – The enlisted performance report is going to drastically change. These changes seek to combat inflated ratings, which have been a prevalent complaint from Airmen over the years. The change is right around the corner and many Airmen are asking themselves, “How will it affect future promotions, and what can I do...
 
 

55th Rescue Squadron returns home

(U.S. Air Force photo by Senior Airman Camilla Elizeu) U.S. Air Force Maj. Stephanie Harley, 355th Aerospace Medicine Squadron Bio Engineering Flight commander, and son welcome home Capt. Colin Harley, 55th Rescue Squadron HH-60 Pavehawk pilot, at Davis-Monthan, Oct. 11. Capt. Harley has just returned from a five-month deployment to Afghanistan.
 

 

AF to implement TDY policy changes

JOINT BASE PEARL HARBOR-HICKAM, Hawaii (AFNS) — Recently, the Air Force started implementing two temporary duty policy changes that will impact travel reimbursements for Airmen. The first change, which took effect Oct. 1, made changes to the Joint Travel Regulations, Reimbursable and Incidental Expense Policy. The second will be a change in long-term TDY per...
 
 

OPSEC: Everyone’s responsibility

NELLIS AIR FORCE BASE, Nev. – Everyone who’s been around the military has heard the term Operations Security, or OPSEC, but do they really know what it means? Many people think OPSEC is all about classified information, when the opposite is true; OPSEC targets critical and sensitive unclassified information. OPSEC is a fundamental principle of the Air...
 




0 Comments


Be the first to comment!


Leave a Reply

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

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


Directory powered by Business Directory Plugin