With an increasing number of Veterans returning from serving our country and the previous generation getting old the Veterans Administration (VA) is granting more and more disability ratings for our service members and former service members. If you are a Tax Professional who prepares returns for people who served or are serving in the U.S. Armed Services or you are a Veteran please take a few minutes to look at this step-by-step guide to the best way to make sure Veterans get the full amount of their tax refunds.
According to IRS Publication 3, Armed Forces’ Tax Guide, the Armed Forces Tax Council (AFTC) oversees the military tax programs offered worldwide. AFTC partners with the IRS to conduct outreach to military personnel and their families. This includes the Army, Air Force, Navy, Marine Corps and Coast Guard.
Military-based Voluntary Income Tax Assistance (VITA) sites staffed with IRS-trained volunteers provide free tax help and tax return preparation. Volunteers receive training on military tax issues, such as combat zone tax benefits, filing extensions and special benefits that apply to the Earned Income Tax Credit. To receive free tax assistance, bring the following records to your military VITA site:
• Valid photo identification
• Social Security cards for you, your spouse and dependents, or a Social Security number verification letter issued by the Social Security Administration
• Birth dates for you, your spouse and dependents
• Wage and earning statement(s), such as Forms W-2, W-2G, and 1099-R
• Interest and dividend statements (Forms 1099)
• A copy of last year’s federal and state tax returns, if available
• Checkbook for routing and account numbers for direct deposit of your tax refund
• Total amount paid for day care and day care provider’s identifying number. This is usually an Employer Identification Number or Social Security number.
Other relevant information about income and expenses
If you are married filing a joint return and wish to file electronically, both you and your spouse should be present to sign the required forms. If both cannot be present, you usually must bring a valid power of attorney form along with you. You may use IRS Form 2848, Power of Attorney and Declaration of Representative for this purpose.
There is a special exception to this rule if your spouse is in a Combat Zone. The exception allows a spouse to prepare and e-file a joint return with a written statement stating the other spouse is in a combat zone and unable to sign. Also be sure to check out:
• Tax Information for Members of the Military
• Special Earned Income Tax Credit (EITC) Rules for the Military