The ultimate tax guide for veterans – the simple dollar gas x strips instructions

Active duty means you’ve served full-time as a member of the Army, Navy, Air Force, Marine Corps, Coast Guard, or as a commissioned officer of the Public Health Service, the Environmental Services Administration or the National Oceanic and Atmospheric Administration. Who Else is Eligible?

Just like any other tax-paying individual, you may be able to take advantage of certain tax incentives. For example, if you’ve searched for a job, then in next year’s tax return you can deduct expenses for creating a résumé and cover letters, related transportation costs, and fees for phone minutes used to call prospects, hiring an employment agency, and business networking events, to name a few. Also, many disabled veterans are eligible for the Earned Income Tax Credit, which is targeted at low- to moderate-income working individuals and families. Tip #3: Keep your records in a safe place.

To qualify for veterans’ tax benefits, you need to show evidence of your status as a U.S. veteran. Keep all your relevant documents in one place and make copies if you want to be extra safe. If you do misplace any of your important records, contact the U.S. Department of Veterans’ Affairs for replacements immediately. Tip #4: Know your eligibility.

Don’t make assumptions about what you’re eligible for. Every benefit stipulates its own eligibility rules, some more detailed than others. For example, to receive a Specially Adapted Housing Grant, veterans must prove they are experiencing very specific physical losses or loss of use in certain body parts. Tip #5: Track your tax liability.

Remember taxes are not withheld from military payments, so it’s important to keep track of your tax liability. According to the IRS, prior to leaving the military, you should complete Form W-4P (Withholding Certificate for Pension or Annuity Payments) to tell the Defense Finance & Accounting Service (DFAS) how much tax to withhold from your monthly retirement pay. Tip #6: Remember tax benefits change year by year.

Veterans who are highly disabled or housebound and are receiving pension may also qualify for an additional Aid and Attendance (A&A) benefit, which is additional monetary payment available for veterans and survivors require the aid and attendance of another individual.

This benefit is paid to veterans who have experienced a service-connected disability. Generally, you are eligible if your disability occurred during service, was aggravated during service, or is determined by the VA as a direct result of your service.

• Survivors may apply for the VA’s Dependency and Indemnity Compensation payment, which is a flat-rate monthly disbursement that is adjusted annually for inflation. Surviving spouses with dependent children are eligible for additional monthly payment for each child, plus an additional transitional assistance of $250 each month.

The VA provides life insurance benefits to protect your family and to take into consideration the dangers of active duty in the military. Servicemembers’ Group Life Insurance (SGLI) is a low-cost group life insurance program for servicemembers.

The Specially Adapted Housing (SAH) grant is designed to help service-connected disabled veterans by providing a way to construct or modify a home to meet their adaptive needs, such as making a home wheelchair accessible. The maximum dollar amount allowable for these grants during the 2018 fiscal year is $81,080. You may use the grant benefit no more than three times up to the maximum dollar amount allowable.

• The inability to use or complete loss of one lower extremity together with (1) residuals of organic disease or injury, or (2) the loss or loss of use of one upper extremity, affecting balance or propulsion as to preclude locomotion without the aid of braces, crutches, canes, or a wheelchair

The Special Housing Adaptation (SHA) grant is available to help improve mobility throughout the home of a veteran with a specific service-connected disability. The maximum dollar amount allowable for these grants during the 2018 fiscal year is $16,217. As with the SAH grant, you may use the SHA grant benefit no more than three times up to the maximum dollar amount allowable.

The CWT program assists veterans who are unable to work and support themselves. Many CWT members have histories of psychiatric illness, substance abuse, and homelessness. This program provides vocational rehabilitation services tailored to the unique needs and circumstances of each individual.

Service members who have been on active duty or served in the Reserves or Guard for an extended period of time, usually at least 20 years, may receive pay upon retirement. The type and amount of retirement pay depends on your age and length of service.

If you were injured on active duty, you can choose to receive a lump-sum disability severance payment upon discharge from the military. Note that if your disability is combat-related, you may be eligible for a monthly disability pension from the VA.

According to the U.S. Department of Veterans’ Affairs website, the lump-sum disability severance payment you received when discharged is fully taxable in the year received. However, if you are granted a VA entitlement at a later date, you may be eligible to amend your previously filed return and subtract the lump-sum disability severance payment. Health Care

The VA provides a number of health care services, including but not limited to hospital, outpatient medical, dental, pharmacy, and prosthetic services; domiciliary, nursing home, and community-based residential care; treatment related to Military Sexual Trauma (MST); readjustment counseling; homeless veteran programs; and alcohol and drug dependency treatment. The VA supports caregivers who provide personal care services to Veterans who are seriously injured, chronically ill, disabled, or are getting older and are no longer able to adequately care for themselves.

This is a special case. Veterans are granted the option to decide whether they want to stick with their VA coverage or purchase their own health care policy through a marketplace, then get a tax credit if they qualify. However, veterans who are enrolled in VA health care will not be eligible for premium tax credits. STATE TAX BENEFITS

This is important to keep in mind: Each state manages its own Veterans’ Affairs office and their benefits are not the same across the board. Make sure you contact your state’s VA office and inquire about any tax benefits for veterans. Property Taxes: One of the Most Popular State Tax Benefits

Many states now reduce or eliminate property tax liability altogether for disabled veterans. For example, with California’s Disabled Veterans’ Exemption, as long as the property is the veteran’s primary place of residence; the full value of the residence does not exceed $150,000; and total household income does not exceed $40,000, a 100% disabled veteran is allowed to claim a full property tax exemption.

Through eBenefits, veterans can search and apply for benefits, view their disability compensation claim status, access official military personnel documents, and register for and update direct deposit information for certain benefits, among others.