Understanding military taxes is crucial for tax pros due to the unique benefits and deductions available to service members. These complexities require specialized knowledge to ensure accurate filings and maximize potential refunds for military clients.
Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you can access the full recording and the entire list of Q&As.
Q: Do any of these forms or rules apply to National Guard Enlisted Personnel, or is it only in the state they enlist?
A: Yes, they do apply, but only in limited situations. The Guard member must be called to service by the President or the Secretary of Defense for a period of 30 days or more.
Q: Does filing a Form DD2058, State of Legal Residence Certificate, change the home of record?
A: No, filing Form DD2058 does not change a military member’s Home of Record. It is only used to change the state of residency for withholding tax purposes.
Q: If the military pays to return them home, should there be no moving expense deduction on the tax return?
A: If the service member receives a nontaxable reimbursement for moving expenses, they cannot claim a deduction unless their moving expenses exceed the reimbursement amount.
Q: What is ‘MyPay’?
A: MyPay is an online tool for military personnel to manage pay information, view leave and earning statements, and access Form W-2 information.
To learn more about tax planning for military personnel and spouses, you can watch our on-demand webinar. NATP members can attend for free, depending on membership level! If you’re not an NATP member and want to learn more, join our completely free 30-day trial.
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.