In honor of Memorial Day, below are a few resources that may be available to your veteran clients. The IRS lists all available resources HERE:
Veterans may need assistance with more than just tax preparation. If you have been approached for services by a veteran who may not be able to afford your normal fees, there are a large number of free tax preparation services available to vets. Miltax offers several free services including preparation software.
If you are preparing returns for vets, make sure you look for things like earned income credits, proper calculations of tax on disability benefits, and advanced child tax credits. Special tax considerations may need to be made if a veteran has fluctuating disability benefits in the first years out of active duty.
Providing some insight on tax withholdings is a great value add.
Veterans who receive one-time, lump-sum disability payments after being injured during combat are not to be taxed on these payments. Keep an eye out for unusual items like these that may impact these clients, specifically.
Additionally, military families are still allowed to take deductions for moving expenses on Form 3903.
Veterans may also have extended time to file amended returns beyond the normal three years if you have a client in need. Veterans may have access to tax-free education assistance as well, so be on the lookout for these items on applicable returns.
In addition to tax services, the above IRS website also provides a redirect to services if you know a veteran in crisis, the veteran’s justice outreach program, and services for homeless veterans.
Thank you to all our veterans and active duty service men and women this Memorial Day and every day for your brave service.