5 Tax Breaks for Veterans

Here are 5 tax benefits you should know about if you served in the armed services.  

1. Veterans are eligible to receive certain benefits, tax-free.  Disability payments from the military and the Veteran’s Administration, Post-9/11 GI Bill financial aid, housing grants, and money earned through the Compensated Work Therapy Program are not considered taxable income. 
2. You may qualify for thousands of dollars in tax credits.  Nearly 1 in 4 military families qualify for an Earned Income Tax Credit (EITC) of up to $6,728, or a Child Tax Credit (CTC) of up to $3,600 per child. But these credits aren’t automatic. Your Tax Pro can tell you if you qualify.
3. Retroactive tax credits may be available for certain veteran disability claims.  There is a special way of handling Veterans Affairs disability claims in order to get credit for retroactive disability claims. Be sure to ask your Tax Pro if this could apply to your specific situation.
4. Many states offer tax breaks for eligible veterans.  One of the most common is reducing or eliminating property tax for disabled veterans. Be sure to ask your Tax Pro about your state’s rules.
5. Your family may be eligible for tax benefits.  Family members of deceased or disabled veterans may also receive benefits, and some of them may be tax-free. This includes spouses, children, and parents of service members. 

A Tax Pro can work with you to be sure you get every credit and deduction you deserve for your service to your country—on both your federal and state returns. To learn more, visit  www.jacksonhewitt.com