Delinquent, Filing Late Tax Returns – Back Tax Return Tax Help

by Fresh Start Tax | Jul 23, 2013 | Tax Help

If you need to file back, delinquent or past due tax returns and work out a tax settlement contact us today.

 
Being former IRS agents and managers we can help you through the process and get you back on track.
We are the affordable tax firm.
We’ve been practicing since 1982 and we have a A+ rated by the Better Business Bureau.
It is critically important that you file all your delinquent or past due tax returns because the last thing you want to happen is that IRS file your tax return.
IRS will use the highest standard that it can, allow you no deductions or expenses and will  proceed with enforced collection action.
If the Internal Revenue Service has contacted you with the bill, notice or a telephone call contact us today we will send a power of attorney to the Internal Revenue Service and you’ll never have to speak to them.
 

Ramifications of not filing  back tax returns

 
It’s important to understand the ramifications of not filing a past due return and the steps that the IRS will take.
Taxpayers who don’t file a past due return or contact the IRS are subject to the following:
 

•  Penalties and Interest will be assessed and will increase the amount of tax due.

•   The IRS will file a substitute return for you. But this return is based only on information the IRS has from other sources. Thus, if the IRS prepares this substitute return, it will not include any additional exemptions or expenses you may be entitled to and may overstate your real tax liability.

•  Once the tax is assessed the IRS will start the collection process, which can include placing a levy on wages or bank accounts or filing a federal tax lien against your property.

You will need at some point to file your own tax return to save money

 
Even if the IRS has already filed a substitute return, it still makes sense for you to file your own return to make sure you take advantage of all the exemptions, credits, and deductions you are allowed.
The IRS will generally adjust your account to reflect the correct figures. you can call us and ask us about IRS audit reconsideration’s.
 

Upon IRS working the case

The Internal Revenue Service will conduct a full compliance check which means  the IRS will make sure that all filing requirements have been met.
The Internal Revenue Service will make sure that you are current in the year of contact or  verify you have making your current estimated payments.
The Internal Revenue Service will want a plan of action to resolve the case.
 

What is a plan of action?

Any time a taxpayer owes the on delinquent or late filed tax returns  the Internal Revenue Service will want to know the plan of action of dealing with the back owed taxes.
The Internal Revenue Service will request a current financial statement and you will need to put that on form 433-F.
You can find that form on our website.
IRS will usually make one of three determinations on how they will deal with the back tax debt.
After a full review of your financial statement IRS will determine that you are either:

• an economic tax hardship,
• it will insist on a monthly or current payment program plan or
• IRS may advise you that you are a suitable candidate for an offer in compromise.

 
What IRS looks for when working these cases – Specific factors that should be taken into account include:
 

• Degree of flagrancy.

• Special need to enforce compliance in a specific area.

• Whether the delinquency involves trust fund monies collected but not paid over.

Filing Back Tax Returns – The process of filing back or unfiled tax returns: Lost or few tax records 

If you have unfiled tax returns, this process  Fresh Start Tax LLC  uses to get current with the IRS and get you immediate and permanent tax relief

1. We verbally review a year by year history of your income and expenses.

2. We review any records you may have.

3  We pull all IRS information that they have received from 3rd party sources that have been placed on the IRS computer system over the past 7 years.

4. If you have lost all your records we have easy and simple forms that can help you reconstruct your tax return.

5. We can prepare through years of experience  a “reconstructed” tax return that the IRS will accept and process.

6. We review all returns for accuracy with the client and send them into the IRS.

7. We work out a settlement agreement with the IRS to permanent close your tax case.

Common Mistakes made on filing delinquent or late filed tax returns

1. Incorrectly Reporting 1099-MISC Income on Your Past Due Returns

A Form 1099-MISC is used to report payments made in the course of a trade or business to another person or business who is not an employee, also referred to as self-employed.
The form is required, among other things, when payments of $600 or more in non-employee compensation, medical and health care payments, or rents are paid. This form is filed by the payer with the IRS and a copy is sent to the person or business receiving the payment.
Unlike a W-2, there is no federal income tax, Social Security tax or Medicare tax withheld. The person or business receiving the payment is responsible for paying all taxes.
2. Self-employed individuals report their income on Form 1040, Schedule C (PDF), Profit or Loss from Business (Sole Proprietorship), or you may qualify to use Form 1040, Schedule C-EZ (PDF), Net Profit from Business (Sole Proprietorship).
You should also be aware of Form 1040, Schedule SE (PDF), Self-Employment Tax, which must be filed if net earnings from self-employment are $400 or more. This form is used to figure your Social Security and Medicare tax, which is based on your net self-employment income.
3. Not Reporting Capital Gains/Losses on Past Due Tax Returns
In general, if you had a capital gain or loss, including any capital gain distributions from sales of stock or bonds, you must complete Form 1040 and attach a Schedule D to your tax return. Refer to Publication 550, Investment Income and Expenses for more information.
4. Failing to File a Past Due Return for a Deceased Taxpayer
A personal representative (fiduciary) is responsible for filing certain tax returns for a person who has died, and for the decedent’s estate. The personal representative may be required to file the final income tax return of the decedent and any returns not filed for preceding years, the income tax return for the estate, and the estate tax return.
The final return should have the word: “Deceased,” the decedent’s name, and the date of death written across the top of the return.
Generally, the person who is filing a return for a decedent and claiming a refund must file Form 1310 (PDF), Statement of Person Claiming Refund Due a Deceased Taxpayer, with the return. However, if you are a surviving spouse filing a joint return, or a court appointed or certified personal representative filing an original return for the decedent, you do not have to file Form 1310.
Personal representatives must attach to the return a copy of the court certificate showing the appointment.
5. Not Providing Correct Social Security Numbers for All Dependents
Be sure that all dependents’ Social Security numbers (SSNs) and names match their Social Security identification cards.  If the SSNs do not match, we will disallow the dependents and any related credits, but you will need to call the Social Security Administration at (800) 772-1213 to correct the mistake.
6.Failing to Sign Your Past Due Tax Return, this is a big one!!!
All returns must be signed. If filing jointly, both taxpayers must sign.
7. Mailing Your Past Due Tax Return to Incorrect Address
Be sure to mail your past due tax return to the IRS address on your notice.  Sending your return to another address will delay the processing of your return.
8. Omitting Spouse’s Income on a Jointly Filed Past Due Return
Income from both taxpayers must be included on the return. If you need income information, please call the IRS’ toll-free number at (866) 681-4271.
9. Omitting the 10 Percent Early Distribution Tax on Qualified Retirement Plans
In general, any distribution from your IRA, other qualified retirement plan, or modified endowment contract before you reach age 59½ is an early distribution. In general, if you receive an early distribution (including an involuntary cash out) from an IRA, other qualified retirement plan, or modified endowment contract, the part of the distribution included in income generally is subject to an additional 10 percent tax.
10. Incorrectly Reporting Rollover Distributions
A rollover is a tax-free distribution of assets from one qualified retirement plan that is reinvested in another plan or the same plan.
Generally, you must complete the rollover within 60 days of receiving the distribution. Any taxable amount not rolled over must be included in income and may be subject to the additional tax on early withdrawals.
 
 

 Delinquent, Filing Late Tax Returns – Back Tax Return Tax Help

Tax Debt Consultants – Affordable Local Experts – Ft.Lauderdale, Miami, Palm Beaches

by Fresh Start Tax | Jul 17, 2013 | Tax Help

We are a local South Florida tax firm and are affordable experts in tax debt back with both the Internal Revenue Service and the state of Florida.
If you owe back taxes and have State or IRS federal tax debt you can contact us today for a free initial consultation. You can call us or come by and visit our offices today and speak directly with a true tax professional.
We will simply let you know if we can help you and offer you different and various tax solutions that could remedy your problem forever.
We will give you advice and offer to you every possible tax solution and remedy that will be available to you given your individual case and financial situation.
We are A+ rated by the Better Business Bureau so have no fear that the information we will be giving you is true and correct. We have worked thousands of cases right here in South Florida since 1982.
We are a professional tax firm comprised of tax attorneys, tax lawyers, certified public accountants, and former IRS agents, managers and tax instructors.
We have over 60 years of working directly for the local South Florida Internal Revenue Service in the local, district, and regional tax offices.
We have over 206 years of professional tax debt experience and we are A+ rated by the Better Business Bureau.
 

How Government Agencies Deal Back Tax Debt

 
There are generally three solutions if you owe the state or the federal government back tax debt and almost all government agencies work the same way.
For the government to deal with back tax debt they will want a current financial statement. That current financial statement form will very from state to state and the Internal Revenue Service specifically will use form 433-F or a form 433-A depending on who is working your case.
I cannot tell you the importance of this financial statement. It will usually determine  the outcome of your case and that’s why it is best to have a true tax professional prepare your financial statement in negotiate the terms of your settlement.
Once the government agency reviews your current financial statement they will want complete documentation to verify the correctness in the accuracy of your current financial state. You want to make sure you’re honest and forthright on your financial statement. They will also want to see bank statements, pay stubs and receipts of all current expenses. Many will want a copy of your last tax return.
They will also conduct a full compliance check to make sure all your tax returns have been filed and up-to-date.
 

How they will deal and close your case on you back tax debt

The three categories that taxpayers or businesses are usually put into after review of the financial statement with a government agency are the following.

• They may determine that you are an noncollectable candidate to put your back tax account into a current tax hardship sometimes known as currently not collectible or
• another option is that they will insist on a monthly payment or installment plan,

• or another option they will ask you and let you know that you are a qualified and suitable candidate to settle your tax case.

 
Contact us today for a free tax that consultation and hear the various solutions and remedies to permanently and immediately began to remedy your case.
Remember if you are going to choose a tax debt consultant you should consider using tax attorneys, CPAs or former IRS agents and managers who know the systems, the protocols, and the best tax settlement strategies to resolve your back tax debt.
We can work out a personalized plan for you that can get you immediate and permanent tax relief on your back tax debt.
 

Tax Debt Consultants – Affordable Local Experts – Ft.Lauderdale, Miami, Palm Beaches

Back Tax Debt Solutions – IRS Experts, Former IRS, Since 1982 – Ft.Lauderdale, Miami, West Palm Beach – South Florida

by Fresh Start Tax | Jul 16, 2013 | Tax Help

We are a local South Florida tax firm that specializes in back tax debt solutions with both the state of Florida and the Internal Revenue Service.
We are an A+ rated professional tax firm located right here in your own home community of South Florida.
We have been located right here in South Florida since 1982.
We are comprised of tax attorneys, certified public accountants, and former IRS agents and managers who have a combined 60 years of direct work experience in the local South Florida IRS offices.
Besides the offer in  compromise program there are other back tax debt solutions that IRS has to offer, it all depends on your individual case and your individual financial statement.
Your current financial statement will hold the key to which back tax debt solution you are eligible for.
As former IRS agents,  we know every tax protocol and every back tax debt solution that is offered by both the federal and state governments.
You may be eligible for an economic tax hardship called currently not collectible, you may be eligible for a payment or installment agreement or you may be eligible for the ultimate back tax debt solutions called the offer in compromise.
The only way to determine what the best tax debt solution will be on your individual case is to contact us for free initial  consultation and be prepared to give us your current financial statement.
You will need to fill out a form 433F  which is the IRS version of a financial statement.  You can find that form on our website. Once we review that we can go over all the back tax debt solutions and help permanently and immediately remedy your IRS back tax problem.
There are many good tax firms that specialize in back tax debt solutions nationwide and we believe we are one of the finest firms because of our expertise and experience in IRS tax settlements.
While at the Internal Revenue Service we taught the offer in compromise program, tax settlements,  to new IRS agents.
Back Debt Solutions called the Offer in Compromise
An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed.
If the liabilities can be fully paid through an installment agreement or other means, the taxpayer will in most cases not be eligible for an OIC.
In order to be eligible for an OIC, the taxpayer must have:
 

• filed all tax returns,
•  made all required estimated tax payments for the current year, and
• made all required federal tax deposits for the current quarter if the taxpayer is a business owner with employees.

 
In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential .
The RCP is how the IRS measures the taxpayer’s ability to pay.
The RCP includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property. In addition to property, the RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.
 
The IRS may accept an OIC based on three grounds.
 

• First, acceptance is permitted if there is doubt as to liability. This ground is only met when genuine doubt exists under applicable law that the IRS has correctly determined the amount owed.

• Second, acceptance is permitted if there is doubt that the amount owed is fully collectible. This means that doubt as to collectibility exists in any case where the taxpayer’s assets and income are less than the full amount of the tax liability.

• Third, acceptance is permitted based on effective tax administration. An offer may be accepted based on effective tax administration when there is no doubt that the tax is legally owed and that the full amount owed can be collected, but requiring payment in full would either create an economic hardship or would be unfair and inequitable because of exceptional circumstances.

 
When submitting an OIC based on doubt as to collectibility or based on effective tax administration taxpayers must use the most current version of all Forms. Those forms are:
 
 
Those required forms are:
 

• 656 (PDF), Offer in Compromise, and also submit
• Form 433-A (OIC) (PDF), Collection Information Statement for Wage Earners and Self-Employed Individuals, and/or
• Form 433-B (OIC) (PDF), Collection Information Statement for Businesses.
• A taxpayer submitting an OIC based on doubt as to liability must file a Form 656-L (PDF), Offer in Compromise (Doubt as to Liability), instead of Form 656 and Form 433-A (OIC) and/or Form 433-B (OIC).

 
Required Application Fees
In general, a taxpayer must submit a $150 application fee with the Form 656. Do not combine this fee with any other tax payments.
There are, however, two exceptions to this requirement.
No application fee is required if the OIC is based on doubt as to liability.
The fee is not required if the taxpayer is an individual (not a corporation, partnership, or other entity) who qualifies for the low-income exception.
This exception applies if the taxpayer’s total monthly income falls at or below 250 percent of the poverty guidelines published by the Department of Health and Human Services. Section 4 of Form 656 contains the Low Income Certification guidelines to assist taxpayers in determining whether they qualify for the low-income exception.
A taxpayer who claims the low-income exception must complete section 4 of Form 656.
Taxpayers may choose to pay the offer amount in a lump sum or in installment payments.
A Lump Sum Offer
A “lump sum offer” is defined as an offer payable in 5 or fewer installments and within 24 months after the offer is accepted.
If a taxpayer submits a lump sum offer, the taxpayer must include with the Form 656 a nonrefundable payment equal to 20 percent of the offer amount. This payment is required in addition to the $150 application fee.
The 20 percent amount is called “nonrefundable” because it cannot be returned to the taxpayer even if the offer is rejected or returned to the taxpayer without acceptance. The 20 percent amount will be applied to the taxpayer’s tax liability.
The taxpayer has a right to specify the particular tax liability to which the IRS will apply the 20 percent amount.
Periodic payment offer
The offer is called a “periodic payment offer” under the tax law if it is payable in 6 or more monthly installments and within 24 months after the offer is accepted.
When submitting a periodic payment offer, the taxpayer must include the first proposed installment payment along with the Form 656.
This payment is required in addition to the $150 application fee. This amount is nonrefundable, just like the 20 percent payment required for a lump sum offer.
Also, while the IRS is evaluating a periodic payment offer, the taxpayer must continue to make the installment payments provided for under the terms of the offer. Should you stop payments you have by manual  defaulted of the offer.
These amounts are also nonrefundable. You absolutely want to make sure you qualify for your offer in compromise.
These amounts are applied to the tax liabilities and the taxpayer has a right to specify the particular tax liabilities to which the periodic payments will be applied.
The statutory time period  gets extended when you file an offer in compromise.

Ordinarily, the statutory time within which the IRS may engage in collection activities is suspended during the period that the OIC is under consideration and is further suspended if the OIC is rejected by the IRS and where the taxpayer appeals the rejection to the IRS Office of Appeals within 30 days from the date of the notice of rejection.
If the IRS accepts the taxpayer’s offer, the IRS expects that the taxpayer will have no further delinquencies and will fully comply with the tax laws. If the taxpayer does not abide by all the terms and conditions of the OIC, the IRS may determine that the OIC is in default. The taxpayers federal tax lien also will get released.
Offers for Collectibility and effective tax administration
For doubt as to collectibility and effective tax administration OICs, the terms and conditions include a requirement that the taxpayer timely file all tax returns and timely pay all taxes for 5 years from the date of acceptance of the OIC.
When an OIC is declared to be in default, the agreement is no longer in effect and the IRS may then collect the amounts originally owed, plus interest and penalties. Additionally, any refunds due within the calendar year in which the offer is accepted will be applied to the tax debt.
Rejected offers in compromise
If the IRS rejects an OIC, then the taxpayer will be notified by mail. The letter will explain the reason that the IRS rejected the offer and will provide detailed instructions on how the taxpayer may appeal the decision to the IRS Office of Appeals.
The appeal must be made within 30 days from the date of the letter. You absolutely cannot miss this 30 days date and we suggest that you send it in by certified mail.
In some cases, an OIC is returned to the taxpayer, rather than rejected, because the taxpayer has not submitted necessary information, has filed for bankruptcy, has failed to include a required application fee or nonrefundable payment with the offer, or has failed to file tax returns or pay current tax liabilities while the offer is under consideration.
A return is different from a rejection because there is no right to appeal the IRS’s decision to return the offer.
Other back tax debt solutions
Beside the offer in compromise the IRS may consider that you have more necessary expenses and income. If that is the case the Internal Revenue Service can put you into a tax hardship. You will need to verify all income expenses on the IRS form 433F. You can stay into a tax hardship for two or three years before IRS will review your case again. If you have more income the necessary expenses IRS will place you into a monthly installment agreement or payment plan.
Before you contact the Internal Revenue Service it is best to contact a qualified tax  professional to find out which is the best back tax debt solution that is right for you
Call us today for a free initial tax consultation and we can walk you through the process of different tax solutions.
We the we are the affordable tax experts located right here in South Florida in your own home community.
 
Back Tax Debt Solutions – IRS Experts, Former IRS, Since 1982 – Ft.Lauderdale, Miami, West Palm Beach – South Florida

Need to Pay IRS Over Time, Payment, Installment Plans – Affordable

by Fresh Start Tax | Jul 16, 2013 | Tax Help

 
We are comprised of tax attorneys, certified public accountants, and former IRS agents, managers and tax instructors who can get you a payment or installment agreement so you can pay IRS over time.
We have been in private practice since 1982 and we are A+ rated by the Better Business Bureau.
We are the affordable tax firm that can help you get an installment payment plan over a period of time that fits your financial needs.
A very important aspect of the IRS payment or installment plan is determined by the amount of tax you owe.
If you over $50,000 the process will be a little more complicated and if you will owe under $50,000 in the process can be very simple.
Contact us today and we can review your individual case and give you some tax options and easy solutions to  permanently and immediately take care of your IRS tax debt.
 

Payment, Installment Plans

 
In-Business Trust Fund Express Installment Agreements
Small businesses who currently have employees can qualify for an In-Business Trust Fund Express Installment Agreement (IBTF-Express IA).
These installment agreements generally do not require a financial statement or financial verification as part of the application process.
 
The criteria to qualify for an IBTF-Express IA are:
You owe $25,000 or less at the time the agreement is established.
If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify.
 

• The debt must be full paid within 24-months or prior to the Collection Statute Expiration Date (CSED), whichever is earlier.

• You must enroll in a Direct Debit installment agreement (DDIA) if the amount you owe is between $10,000 and $25,000.

• You must be compliant with all filing and payment requirements.

Streamlined Installment Agreements

 
The Fresh Start provisions also mean that more taxpayers will have the ability to use streamlined installment agreements to catch up on back taxes.
Under the Fresh Start initiative, the maximum dollar criteria for streamlined installment agreements has been raised from $25,000 to $50,000 and the maximum term has been raised from 60 months to 72 months.
These installment agreements generally do not require a financial statement, but a limited amount of financial information may be required in the application process.
The Streamlined Installment Agreement criteria is divided into two categories, balance due of $25,000 or less, and balance due $25,001 to $50,000.
 
The criteria to qualify for streamlined installment agreements with a balance due of $25,00 or less are:
You owe $25,000 or less, at the time the agreement is established. If you owe more than $25,000, you may pay down the liability before entering into the agreement in order to qualify.

• The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.

• You must be compliant with all filing and payment requirements.

• Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).

• Defunct businesses, including any type of entity and any type tax (Form 940, 941, 943, etc.).

• Operating businesses are limited to income tax liabilities only (Form 1120).

 
The criteria to qualify for streamlined installment agreements with a balance due of $25,001 to $50,000 are:
 
You owe $25,001 to $50,000, at the time the agreement is established.
If you owe more than $50,000, you may pay down the liability before entering into the agreement in order to qualify.
 

• The debt must be full paid within 72-months or prior to the Collection Statute Expiration Date, whichever is earlier.

• You must be compliant with all filing and payment requirements.

• Individuals who owe any type of tax (Form 1040, Trust Fund Recovery Penalty, etc.).

• Businesses are limited to defunct sole proprietors who owe any type of tax (Form 940, 941, 943, etc.).

• You must enroll in a Direct Debit Installment Agreement.

• A limited amount of financial information may be required during the application process.

 
Taxpayers seeking installment agreements exceeding $50,000 will still need to supply the IRS with a Collection Information Statement (Form 433-A (PDF) or Form 433-F (PDF)).
You can make monthly payments through an installment agreement if you’re not financially able to pay your tax debt immediately.
However, you will reduce or eliminate the amount of penalties and interest you pay and avoid the fee associated with setting up an installment agreement if you pay your tax bill in full.
 
Before you apply:

• File all required tax returns;

• Consider other sources (loan or credit card) to pay your tax debt in full to save money;

• Determine the largest monthly payment you can make ($25 minimum); and

• Know that your future refunds will be applied to your tax debt until it is paid in full.

 
Fees for setting up an installment agreement:
 

• $52 for a direct debit agreement;

• $105 for a standard agreement or payroll deduction agreement; or

• $43 if your income is below a certain level.

 
Understand your agreement, avoid default
 
To keep your account in good standing:

• Pay at least your minimum monthly payment when it’s due (direct debit or payroll deductions make this easy);

• Include your name, address, SSN, daytime phone number, tax year and return type on your payment;

• File all required tax returns on time;

• Pay all taxes you owe in full and on time (contact us to change your existing agreement if you cannot);

• Continue to make all scheduled payments even if we apply your refund to your account balance; and

• Ensure your statement is sent to the correct address, contact us if you move or complete and mail Form 8822, Change of Address (PDF).

• If you don’t receive your statement, send your payment to the address listed in your agreement.

 
There may be a reinstatement fee if your agreement goes into default. Penalties and interest continue to accrue until your balance is paid in full.
If you are in danger of defaulting on your payment agreement for any reason, contact the IRS immediately.
 
The IRS will generally not take enforced collection actions:
 

• When an installment agreement is being considered;

• While an agreement is in effect;

• For 30 days after a request is rejected, or

• During the period the IRS evaluates an appeal of a rejected or terminated agreement.

 
Contact us today for free initial tax consultation. We can not only get you an IRS payment agreement over time we can also settle your case.
 

Need to Pay IRS Over Time, Payment, Installment Plans – Affordable

IRS Tax Help – Armed Forces – Former IRS Agents – Tax Services

by Fresh Start Tax | Jul 15, 2013 | Tax Help

If you are in the Armed Forces and have a IRS tax problem  and need affordable professional help call us today for free tax consultation.
Special Tax Benefits for Armed Forces Personnel
If you’re a member of the U.S. Armed Forces, the IRS wants you to know about the many tax benefits that may apply to you.
Some special tax rules apply to military members on active duty, including those serving in combat zones.
These tax  rules can help lower your federal taxes and make it easier to file your tax return.
Here are ten of those benefits:
1. Deadline Extensions. Qualifying military members, including those who serve in a combat zone, can postpone some tax deadlines.
This includes automatic extensions of time to file tax returns and pay taxes.
2. Combat Pay Exclusion. If you serve in a combat zone, you can exclude certain combat pay from your income.
You won’t need to show the exclusion on your tax return because qualified pay isn’t included in the wages reported on your Form W-2, Wage and Tax Statement. Some service outside a combat zone also qualifies for this exclusion.
3. Earned Income Tax Credit. You can choose to include nontaxable combat pay as earned income to figure your EITC.
You would make this choice if it increases your credit. Even if you do, the combat pay remains nontaxable.
4. Moving Expense Deduction. If you move due to a permanent change of station, you may be able to deduct some of your reimbursement moving costs.
5. Uniform Deduction. You can deduct the costs and upkeep of certain uniforms that regulations prohibit you from wearing while off duty.
You must reduce your expenses by any reimbursement you receive for these costs.
6. Signing Joint Returns. Both spouses normally must sign joint income tax returns. However, when one spouse is unavailable due to certain military duty or conditions, the other may, in some cases sign for both spouses, or will need a power of attorney to file a joint return.
7. Reservists’ Travel Deduction. If you’re a member of the U.S. Armed Forces Reserves, you may deduct certain travel expenses on your tax return.
You can deduct unreimbursed expenses for traveling more than 100 miles away from home to perform your reserve duties.
8. Nontaxable ROTC Allowances. Educational and subsistence allowances paid to ROTC students participating in advanced training are not taxable.
However, active duty pay – such as pay received during summer advanced camp – is taxable.
9. Civilian Life. After leaving the military, you may be able to deduct certain job hunting expenses. Expenses may include travel, resume preparation fees and job placement agency fees.
Moving expenses may also be deductible.
10. Tax Help. Most military bases offer free tax preparation and filing assistance during the tax filing season. Some also offer free tax help after April 15.
 
IRS Tax Help – Armed Forces – Former IRS Agents