Free Resources to Protect Your Bottom Line at Tax Time

RallyPoint Shared Content — Thu, 01 Apr 2021 13:47:28 -0400

You may know that the government extended federal income tax day this year from April 15 to May 17. Are you also aware that the military will help you file your annual tax return for free?

Here’s more information about that service and a few other ways to protect your bottom line at tax time:

Get free tax-filing services. Through Military OneSource and the U.S. Department of Defense, as a service member (or retiree or Veteran within 365 days of separation), you and your immediate family members can get free tax preparation and e-filing services from MilTax. This suite of services is geared toward military life, providing personalized services related to the tax implications of deployments, combat and training pay, housing and rentals, and life outside the United States. Resources include online software and access to trained military tax consultants, who can be reached by phone, live chat or in person. Details: https://rly.pt/2QYLA7y

Prepare for in-person support. You can opt to have your taxes prepared in person at a Volunteer Income Tax Assistance (VITA) location if one is available near you. But, as a Jan. 5 Military OneSource article advises, be sure to bring all the documents the tax specialist needs to prepare your and your family member’s taxes. These include a valid photo identification; Social Security cards for all filers; and forms related to wage, unemployment and other income. Details: Get a full list of forms at https://rly.pt/3cEyOmT

Inquire about the 2020 Recovery Rebate Credit. If you received full Economic Relief Payments in 2020 provided by the coronavirus relief laws — $1,200 ($2,400 for married joint filers) and $600 ($1,200 for married joint filers) — you don’t have to mention them in the 2020 tax return, according to the Internal Revenue Service. If you did not get the full payment or any payment, that’s because you earned too much in either 2018 or 2019 to qualify. However, if your or your family’s financial situation last year worsened, you may be eligible for a “Recovery Rebate Credit” based on your 2020 tax return, the IRS says. Details: Get more information about this rebate, including qualifying income thresholds, at https://rly.pt/31JQoj3

If you already filed. If you filed your 2020 tax return and reported any unemployment compensation, you may get an automatic refund, the IRS announced March 31. That’s due to a change included the American Rescue Plan, which was signed into law March 11. The law included a provision letting those who earned less than $150,000 in adjusted gross income to exclude from 2020 taxes unemployment compensation of up to $20,400 (for married joint filers) and $10,200 for all others. Details: https://rly.pt/3dklymI

Pay estimated taxes this month. If you, your spouse or someone in your family pays estimated taxes, the next quarterly payment is still due April 15. If you file an extension from the May 17 filing date, your tax return is due Oct. 15, 2021. Details: More about deadline extensions, including those related to retirement and health savings accounts, is at https://rly.pt/3wl5aev

Know who’s eligible for military support services. You’re eligible for MilTax and other Military OneSource support services if you’re an active duty member of the Army, Marine Corps, Navy, Air Force and Space Force or an immediate family member. That covers your spouse and children and anyone who has legal responsibility over your children during separation. Others are eligible for full or partial benefits as well. Details: Services — including health and wellness coaching and financial counseling — and eligibility groups are listed at https://rly.pt/2PRob7h

Take more time to pay back Social Security tax. In other tax news, remember that you have until the end of the year to repay the Social Security payroll tax if it was not deducted from your paycheck between Sept. 1-Dec. 31, 2020. Congress extended the repayment deadline to Dec. 31, 2021, in the 2021 Consolidated Appropriations Act, enacted in late December 2020. Details: https://rly.pt/3fw2mFl

Learn more

Download the Armed Forces’ Tax Guide: https://rly.pt/3wm06qi

Do your taxes at the Military OneSource Tax Resource Center: https://rly.pt/31FYERc

Find more resources at the DOD Office of Financial Readiness: https://rly.pt/31E3qig

Read the latest news from the IRS: https://rly.pt/3rB6Rkk

Update your Military OneSource account and read frequently asked questions about the service: https://rly.pt/39B4JTz

2QYLA7y

Response by MAJ Ken Landgren made Apr 1 at 2021 11:09 PM

MAJ Ken Landgren — Thu, 01 Apr 2021 23:09:41 -0400

I love me tax season. I should get $7000 back for 2019 and $7000 for 2020 :)