FREE TAX FILING FOR VETERANS & 3 EXPERT TIPS ON HOW TO FILE
Filing Taxes as a Veteran
Being prepared well in advance is one of the best ways to enhance your chances of great success with free tax filing for Veterans. Many people are using this season to get organized and to plan ahead, making it easy to take advantage of free tax filing for Veterans’ programs. Tax filing assistance for Veterans is available, but given how backed up the IRS is and how busy these programs will get closer to April 15th, it’s good to get a head start by pulling together all your documents now. Read on to learn more about some of the best tips for free tax filing for Veterans and what to do to increase your chances of getting the maximum tax return in a timely manner. Bear in mind that submitting paper returns is not recommended in 2022 because the IRS is overwhelmed with paper. The earlier you can submit your return with the appropriate documents digitally, the higher your chances of getting your refunds quickly.
Volunteer Income Tax Assistance Basics
Any people who make $57,000 or more, people who do not speak English well, people who need assistance in preparing their tax returns, and persons with disabilities can take advantage of the IRS Volunteer Income Tax Program. Furthermore, free tax help for all taxpayers is available for those who are aged 60 and older through the tax counseling for the elderly program. These volunteers are IRS-certified, so you can feel confident knowing that your material is submitted as accurately as possible. There are over 12,000 locations throughout the United States that can help you with this situation. If you want to keep things simple, consider using My Free Taxes’s free online tax filing for Veterans. They help active-duty military, qualified Veterans, and military family members who earned less than $60,000 during the tax year to file state and federal tax returns. This is delivered through a partnership between the National Disability Institute, United Way, and Goodwill Industries International. Taxpayers can also use industry-leading tax software options to file for free if they earn $72,000 or less. There are 14 software products available. More than 70% of all taxpayers are eligible to use these programs. TurboTax freedom edition, for example, is available to those taxpayers with an income of $31,000 or less or those who are eligible for the Earned Income Tax Credit. Military OneSource also provides free tax filing for military Veterans electronically, which can help you complete, save, and file up to three state returns and your federal returns at no cost. Thankfully, these services make it much easier to file a Veteran tax return by ensuring that a professional is making sure you’re getting everything you’re entitled to in terms of deductions and refunds. Other programs that are available for free tax filing for Veterans include:
- TurboTax military edition for junior enlisted and a discount version for officers and senior enlisted.
- TaxSlayer military, which can help you file your state and federal return for free.
Understanding Tax Breaks and Tips for Veterans
The IRS defines Veterans as those service members who have been on active duty for a minimum of 24 months who have not been dishonorably discharged. Tax benefits may be accessible to not only you but also your parents, children, and spouse.
Tip #1: Don’t Forget Deductions
Knowing what you can and can’t deduct can make a big difference in the bottom line of your taxes. This is why it makes sense to hire help or spend some time going item by item through possible deductions to see if you can reduce your tax bill. This is especially important if you also own a side business or if you own rental properties from your time in service. Any of these complicating factors make it a little more challenging to file your taxes, but they can also give you some great tax breaks if you know what you’re doing. Here are some of those tax deductions and the basics about qualifying for them:
The Child Tax Credit
In 2021, this tax credit was fully refundable. It was also pushed up to $3,600 each year for every child under age 5 and $3,000 for children from 6 to 17 years old. If you have an infant who was born in 2021, you can also claim this credit in 2022! Unless you specifically unenrolled from this program, you should have received advanced monthly installments for the second half of 2021. Once you file your 2022 returns, you’ll get whatever else is owed to you through this credit program. At higher income levels, these credits do phase out, but they are available to those parents who have no income or little income, as well. Dependents who are 18 years old allow for a $500 credit, and this is not limited to biological children, either. Half-siblings, grandchildren, foster children, siblings, and adopted children are eligible for this if they are classified as dependents.
American Opportunity Tax Credit
This tax credit is available for first-time college students who are in their first four years. You could qualify if you meet the income thresholds, have no felony drug convictions on your records, and are currently pursuing a degree. Related read: Veterans Rant – Let Me Back Into F@#%ing College
Missing Stimulus Payments
If you or your spouse did not get payments for the stimulus checks you were owed, don’t forget this around tax time. You cannot claim the first two stimulus payments as missing for your 2021 tax return, but you can report the missing third one when you file your 2021 taxes.
Adoption Tax Credit
Don’t forget that if you adopted a child in 2021, you can claim a maximum of $14,440 per child. This covers attorneys fees, court costs, adoption fees, traveling, and other related adoption expenses. Remember that if you’re using tax filing assistance for Veterans, you’ll need to tell the professional helping you about these situations.
Tip #2: Evaluate Tax-Free Income for Veterans
The vast majority of military pensions are subject to federal income taxes. However, in the event that you get disability money as well (or in lieu of your pension), those disability payments are tax-free and are not required to be reported on your taxes. If a Veteran has a certain disability, they could be eligible for household benefits or aid and attendance benefits. These are exempt from state and federal income taxes. Other benefits provided through the VA that are not taxable for your income are:
- Benefits paid to you under a Dependent Care Assistance Program.
- Motor vehicle grants for Veterans who lost the use of their limbs or their sight.
- Grants provided to modify or construct a home with wheelchair accessibility.
Earned Income Tax Credit
Low-to-moderate-income personnel and their families may be eligible for the earned income tax credit. This is a refundable credit that can reduce your tax liability below zero, allowing you to potentially receive a refund. You must have earned income from salaries or wages, but this can also include long-term disability benefits that were received prior to the minimum retirement age.
Education Assistance
Veterans and their qualified dependents can receive training benefits and education like the Post-9/11 GI Bill to help pay for graduate training, undergraduate training, or on-the-job training. This education support does not need to be declared on your tax return.
Take Advantage of Extra Time To File Your Tax Returns
Usually, you have three years beyond the date that you have filed the tax return to make an amendment and get a refund of any overpaid taxes. There are certain extended windows for amended tax returns for Veterans. The Combat Injured Veterans Tax Fairness Act of 2016, for example, allowed Veterans more time to file a revised return. Injured combat Veterans were eligible to file Form 1040(x) for the tax year for severance disability payments. This tax form could be completed if the disability payments were distributed three years beyond the due date for the original tax return or one year from the date of a DOD notice that was sent in July 2018 or July 2019.
Gather All of Your Documents in Advance
Even if you do not intend to complete your taxes on your own, it can be a good idea to gather all of your relevant information and do some preliminary work to make sure that all deductions are captured. Working with an experienced tax preparation professional is strongly recommended, as this can greatly increase your chances of filing in a timely fashion. Do not hesitate to get help from an experienced tax preparation professional early on, as these people tend to get busier throughout tax season.
Tip #3: Get Help if Filing Taxes as a Disabled Veteran
It’s a good idea to use one of the services for free tax filing for Veterans if you’re filing taxes as a disabled Veteran. Since you likely have benefits, some of which are not taxed, it’s all too easy to make minor mistakes that may cost you extra money on your refund check. Take advantage of the services mentioned in this article, even if you do the first round of your taxes on your own, and get a professional to look over what you came up with; this will give you greater confidence when you hit “submit.” Knowing what to expect can make filing taxes for Veterans a much easier and more streamlined process.