Military Clients
Hear me, I get it.
Firstly, I would like to extend my heartfelt gratitude.
Whether you are a service member, veteran, or spouse, your sacrifices and those of your family are deeply acknowledged and appreciated.
My journey into the tax world actually began because of the uniqueness of our military life.
Having been in the passenger seat of my husband's military career for 18 years and counting, (through 8 moves, 5 states, multiple deployments and TDYs, and two rentals along the way), let me just say, it gets complicated. Each year, it felt like we had to explain our military life to another random person, in another random state. Even after paying the hefty bill, I still felt like they just didn't get it.
I then became an advocate for our family, dug deep into tax law for two long years, and obtained my IRS Enrolled Agent credential.
Throughout my experience, I have discovered that most tax preparers (and some software) try to treat military members like just another tax return because they just don't see them often.
However, as we all know, military members and families are a different breed.
I get it.
I am dedicated to providing exceptional service to those who serve our country, helping you and your family receive every benefit and deduction you're entitled to.
Here are just a few things that can have a large impact on your tax return and finances.
This does not constitute tax advice, each individual return needs specialized attention from a tax professional.
Military Spouse Residency Relief Act:
A military spouse that works in the duty-station area, or maybe even remotely, but may not be a resident of that same state. The MSRRA allows military spouses to maintain their state of legal residence for tax purposes, regardless of where they are stationed due to military orders. This is extremely beneficial if your residency is a state with zero income tax!
Multi-State Filings:
Let me paint a picture, the active duty member is in one state for extended training; your working spouse and kids are in another; then your PCS got bumped up to yet another state; your spouse starts a new job in that state; and you're managing a rental property in you guessed it, another state, and that was just 2023. Sounds normal to me! Frequent relocations complicate state residency and tax obligations. An EA with Multi-State experience ensures the proper state residency to avoid double taxation.
Your former home is now a rental property:
Now, you've got a whole new tax form to consider, Schedule E! We need to get the occupancy timelines, basis, and depreciation figured out correctly the FIRST year it is put into service. You may even still be responsible for filing a state return dependent on the requirements of that state.
(This is the most common and costly error I see among self-prepared and undereducated tax preparers).
Military Exclusion for Sale of Residential Rental Property:
Now say you want to sell that rental property. If you haven't heard the 2 of 5 or the 2 of 15 (5-year suspension) for capital gain exclusion, rest assured, you're not alone. This crucial military exclusion/suspension can drastically change your tax bill and tax planning strategies, if done correctly.
Extensions and Filing Deadlines for Military Members:
Although April 15th may be ingrained as Tax Day, it may not be the case if you are stationed overseas or in a combat zone. During extensions, you are also eligible for no interest or penalties on any tax due.
Deployment Income, Overseas Taxes, Moving Expenses:
There may be deductions, credits, and tax exclusions specifically for your case.
Military-owned Businesses:
Congratulations on embarking on the wild rollercoaster of self-employment. This endeavor may introduce complexities to your tax return, including unfamiliar forms and considerations like meticulous bookkeeping, identifying tax deductions, potential home office deductions, tracking mileage, and more. Treating your business with care and diligence is crucial to maximizing its benefits and potential gains.
​
