The deadline for filing taxes is approaching more quickly than some military families might realize. While this process might not be stressful for some people, others may struggle with knowing exactly what deductions they can take. It's an understandable concern, especially with the often-complicated tax rules, but Credit.com reports there are a few deductions that military families should be certain to take advantage of this year.
This year resembles last year
With the discussions surrounding the budget and debt, it may seem like there were considerable changes to the tax code, but such was not the case, according to the website. This year should be similar to when military families filed for taxes in 2011.
Medical costs can be some of the biggest financial obstacles for military families, but the good news is that they can write off some of them when it comes time to file their taxes. For instance, everything from therapy and counseling to dental care and premiums can come into play. However, the medical expenses must add up to 7.5 percent of one's adjusted gross income (AGI) for 2012.
Costs from the job search
This deduction is particularly helpful for those who have recently separated from the service. Anything that goes into the process, even if it does not result in a new job, can be written off. This includes any travel expenses, money used for employment agencies and even resumes. However, the expenses must add up to 2 percent of one's AGI, Credit.com notes.
One of the staples of life for military families is the need to relocate on a regular basis. Known as a permanent change of station (PCS), the regular moves not only can be stressful, they can also cause some financial hardship. The Armed Forces reimburses military families for some of the expenses that result from moving, but there are sometimes still some things that families have to foot the bill for, such as moving household items and adding any personal goods to the new residence.
Active duty soldiers who spent time in a combat zone during 2012 are entitled to many tax write-offs, according to Military.com. For instance, soldiers do not have to pay income taxes on any type of pay they received during their time deployed to a combat zone. Additionally, any imminent danger or hostile fire pay is exempt from income taxes. However, any pay that stems from a retirement plan or pension does not fall under the category.