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Taxes -- Question & Answer Listing  
Viewing 1-10 of 10 Knowledge Entries
Question / Answer

Question:
Are my Veterans Administration (VA) Benefits taxable?

Answer:
Veterans Administration (VA) Benefits paid to the veteran or the family are not taxable.

Question:
Can I get my taxes prepared for free on post?

Answer:
All Active Duty (AD) service members and their family members are eligible to use the Tax Assistance services on post. Reserve Component (RC) Soldiers, DoD and DA Civilian Employees, Retired AD and RC Soldiers (drawing retirement pay), and some Civilian Contractors supporting the DoD/Army overseas (and family members) are also eligible to receive tax assistance. However, there are some restrictions. Contact your military community legal office for specifics. In general, legal assistance on real and personal property tax issues and on the preparation of Federal and State income tax returns is provided. Legal assistance may be provided on estate, inheritance and gift tax matters, electronic filing of income tax returns, and appealing tax rulings and other findings based on the availability of expertise and resources.

Question:
How do I know which tax forms I need and how to prepare them?

Answer:
During the tax season military personnel and their families can take advantage of the Army's Tax Assistance program which offers free tax preparation services. They can help you identify which form you need to complete your taxes. There are a number of commercial tax preparation services, books, and software programs available to assist you in preparing your taxes. Additionally, you can visit the Internal Revenue Service (IRS) website for more information on Federal Income Taxes.

Question:
How do taxes impact my take home pay?

Answer:
Your take home pay is the amount left over after Federal, State, and Local taxes (if applicable) are taken out as well as any allotments you have set up (e.g., loan payments, automatic savings account contributions, charitable donations, etc.).

Question:
What are the tax implications for self-employed persons?

Answer:
There are a number of tax issues to consider as a self-employed individual such as paying self-employment tax, which is a social security and Medicare tax for individuals who work for themselves. You may also have business expenses to keep track that will need to be documented when you file income taxes. There are a number of resources such as books, professional tax advisors, websites, etc., that can provide information on tax implications for the self-employed.

Question:
What is a W-2 Income Statement?

Answer:
A W-2 Income Statement is a form that an employer must send to an employee and the IRS at the end of the year. The W-2 form reports an employee's annual wages and the amount of taxes withheld from his/her paycheck.

Question:
What is the criteria for extensions for filing Federal Income Taxes for service members?

Answer:
Individuals who are unable to finish their Federal Income Tax returns by April 15 can I get an extension by filing a Form 4868, Extension to File U.S. Individual Income Tax Return, by the April 15th due date. By filing the extension, you avoid the late filing penalty. Note, that filing this form does not extend the time to pay your income tax. You should make an accurate estimate of your tax and send any necessary payment with your Form 4868. If unable to pay the full amount due with Form 4868, you can still get the extension but you will owe interest on the unpaid amount. Special rules apply to U.S. citizens and residents whose home and main place of business or post of duty are outside the United States or Puerto Rico on the return due date, April 15. An automatic two month extension applies if residing overseas. For more information, refer to Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.

Question:
What is the difference between State Income Tax Withholding Allowance (SITWA) and Federal Income Tax Withholding Allowance (FITWA)?

Answer:
State Income Tax Withholding Allowance (SITWA) is a percentage of your salary that is withheld and sent to your state of residence tax office. The Federal Income Tax Withholding Allowance (FITWA) refers to the portion of your pay that is goes to the Federal Government.

Question:
What tax-related records should I retain and how long is it necessary to keep them?

Answer:
The Internal Revenue Service (IRS) recommends that you keep tax-related records that support an item of income or deduction on a tax return until the period of limitation for that return runs out. Contact a tax advisor for more information or visit the IRS website at http://www.irs.gov.

Question:
Where can I have my taxes prepared?

Answer:
Active Duty Soldiers, their family members and military retirees are eligible to receive free tax assistance from the Army Tax Assistance Centers on military posts/installations. These centers are generally only operational during the "tax season," typically Jan - May. Unit Tax Assistants (UTAs) can also provide some assistance within individual organizations. Check with your community's Legal Assistance office for more information. There are a number of tax preparation services in the local civilian communities as well as free information on the Internal Revenue Service's website.
Viewing 1-10 of 10 Knowledge Entries

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