turbotax military

TurboTax for Military Members: Free Fillings and Special Discounts

Military taxes are unique and can be quite a complex subject to comprehend. Majority of service members have to deal with various types of pay, tax-exempt combat pay, moving to a new state or country, special duty pay and several other factors. That is why TurboTax for the military came out with certain plans that would ease all the aforementioned complications.

Military members need a comprehensive solution to keep pace with complex tax affairs. TurboTax can fulfill these requirements. There is a TurboTax Military Discount. TurboTax has made filling of taxes free of charge for E-1 Through E-5 categories. Also, they provide discounts for military members who are under the E-6 category and up.

The objective of this article is to explain what these taxes are and what they’re applicable for.

How TurboTax for Military Works

TurboTax has made its software available, that too free of cost or at a discounted price for members of the U.S. military. Many service members have simple taxes because they don’t own property or have complex investments. In such cases, they can file free with TurboTax’s Free or Deluxe editions.

Members of the military who have complex taxes or a higher rank qualify for a $5+ discount on Premier, Self-Employed, or TurboTax Live.

Here’s how it works:

Free Federal & State eFile: If you are E1-E5 military, you should qualify for free federal and state filing with their Free Edition or Deluxe Edition.

Military Discount: Rank E6 and above qualify for at least a $5 discount on all federal tax preparation products. This also includes TurboTax Premier.

When you begin filing your taxes with TurboTax, Just use your military W-2 to verify your rank to get the appropriate discount.

  • TurboTax files your military income and combat pay, plus your civilian income (if necessary)
  • Their software searches for specific military expenses including travel, and uniform upkeep
  • TurboTax supports PCS (Permanent Change of Station) orders to quickly determine your state of residence, if applicable
  • Calculates BAH (Basic Allowance for Housing) and BAS (Basic Allowance for Subsistence)

Here are some Military Tax Filing Tips from TurboTax:

  • Waived Penalties– If a military member is called to active duty and it causes financial hardship, they are able to waive the 10% penalty tax for early withdrawal from an IRA or another retirement account.
  • Charitable Donations– You can claim charitable donations automatically deducted from your paycheck.
  • Travel Deductions– National Guard and Reserve members may be able to claim unreimbursed travel expenses. That too, if they travel more than 100 miles away to perform required duties.
  • Combat Pay– Pay received in combat zones is exempt from federal taxes.
  • Job Search Expenses– Military members transitioning to civilian life may be able to deduct job search related expenses such as travel, resume preparation, and outplacement agency fees.
  • Special Provisions for Earned Income Tax Credit (EITC)– Military members can elect to use non-taxable pay in order to be eligible for the EITC credits. (This can result in substantial savings!).
  • Moving Deductions– Active duty servicemembers may be able to deduct reasonable un-reimbursed moving expenses. This is only applicable if the move is for a required PCS.
  • Uniform Deductions– National Guard and Reserve members may be able to deduct the cost and maintenance of uniforms. This is only applicable if they are not allowed to wear certain uniforms when off duty.

For further benefits, military members should consider:

  • Retirement and investment contributions: Contributions to the Thrift Savings Plan, IRAs, and other retirement or investment accounts may be affected by tax-free income earned in combat zones.
  • Filing deadlines: Military members who are serving overseas may be eligible for a free tax deadline extension due to their overseas service.
  • Bonuses, incentive pay, and other benefits should also be considered when filing your tax return with TurboTax or any other software program.
  • Guard and Reserve members may have other deductions in addition to the travel expenses listed above.

And that’s about it!

We hope that this article provided you with the information that you were looking for regarding this topic. In case you came across a section that you were unable to understand or would like to gain further insight about, contact the TurboTax Customer Service Phone Number. Our expert technicians will assist you in clarifying your queries.

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