With Veterans Day approaching, we wanted to dedicate this month’s blog post to our military men and women. We salute and honor you this month and thank you for your sacrifice. Whether it be sacrificing time with your family, or putting yourself at risk, BASC Expertise wants you to know that we are thankful for you and all that you do.

What is and is not taxable?

Even if you are overseas, income earned by military and civilian employees of the United States Government is still taxable. This includes your basic pay, bonus pay and incentive pay. If you have participated in a program for student loan repayment, this may also be taxable. What then is typically not taxable? Combat pay as well as family allowance pay typically is not considered taxable income. Also, any moving or travel expenses you or your family may accumulate can be tax exempt. It is important to keep all your military records easily accessible and on hand. Do not procrastinate contacting the Department of Veterans Affairs (www.va.gov/vaforms). Having these papers available can save you time and future headaches.

Special Tax Breaks

Your mortgage interest and mortgage insurance can still be written off as a tax deduction even though you may be using your Basic Allowance for Housing. If your family owns a home that you are renting out while your family is located, expenses from that may also be used for tax write offs. Military families are able to postpone some tax deadlines and a military spouse may sign for joint returns when one spouse may be absent. Uniform upkeep and cost may also be tax deductible.

Life After Military

If you are in the armed forces, you may be wondering what happens next? Are you spending your money wisely now so that it may last you long term? Perhaps when you are done you will want to start your own business or go back to school. At BASC Expertise, we can assist you with your current and future financial objectives.