by Jerry Curtis

Created on: February 07, 2010

Military families can get free tax help from a number of sources - free online software to individual help at your local base or by telephone. As overwhelming as filing state and federal income tax returns might seem in the midst of your busy military life, there is help out there, and it is free. It is also helpful to know that there are a number of time extensions available to service families that will take the pressure off.

Where to seek free help

Legal assistance centers on many military installations have a service called the Voluntary Income Tax Assistance program (VITA).  This is a free program sponsored by the Internal Revenue Service (IRS). According to the IRS web  page:

“Airmen, soldiers, sailors, marines, guardsmen, and their families worldwide receive free tax preparation assistance at offices within their installations.  These VITA sites provide free tax advice, tax preparation, and assistance to military members and their families.  They are trained and equipped to address military specific tax issues, such as combat zone tax benefits and the effect of the new Income Tax Credit (EITC) guidelines.”

Go early and beat the crowd.

If you want to take advantage of VITA you’ll need to gather up all the usual tax forms (W-2’s, 1099), receipts, banking information, and receipts documenting deductions you plan to claim. Note: If you are married and filing a joint return, you'll need to document well over $11,000 in deductible expenses to make claiming your itemized deductions worthwhile. Another note: If you run a part-time business from your home (e.g., tutor on line), keep records of all your utilities, phone and computer expenses. Take them with you for the interview.

Don’t forget your state income tax liability

When your federal income tax is filed, you are half way there. Your VITA helper will be able to help you find out what your home state income tax liability is. Many states offer a tax break or exemption for military pay.  Seven states (Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming) have no income tax. Two states (New Hampshire and Tennessee only tax interest income and investment dividends.) Look your state on the TaxAdmin.org “State Individual Income Taxes for tax year 2008."

For those that don’t need much help:

You can either do your own research on line and follow the tax software instructions, or you can take the easy way out: There is a great free service for active duty people called “Military OneSource.com.” They have an immensely popular tax filing service, which makes this promise:

 “Military OneSource brings you H&R Block At Home® (formerly TaxCut)…. Prepare your 2009 state and federal taxes with this easy-to-use program. Provided by the Department of Defense, H&R Block At Home® is and free to active duty (military and their families).”

Need a quick answer? Call MilitaryOneSource.com’s hotline seven days a week from 7 a.m. to 11 p.m. ET at 1-800-730-3802.

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Someday Congress is going to wise up and exempt all military pay and allowances from any taxation. Until then, there is plenty of free help and great free software to simplifying the aggravating tax of filing your income taxes. Your country appreciates your service, but you still have to file your tax returns.

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