How to deal with your Expat Tax if you´re in Active Duty in the Armed Forces

It´s often the case that members of the US Armed Forces are not aware that they will continue to have filing responsibilities back home. Luckily, many options are available to considerably benefit you tax wise, your family or anyone you know who´s in active duty abroad.

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Extended Deadlines

Qualified member of the Armed Forces in active duty abroad get an automatic extension for filing tax returns, paying taxes, claiming refunds or other activities with the IRS.

Moving Expenses

There are possibilities to deduct some of your moving expenses due to permanent change of station. Ensure that you´ve kept your receipts for your unreimbursed expenses of anything directly involved in with your move.

Traveling to a Reserve Duty

Other deductible opportunities include un-reimbursed travel expense from home to complete your reserve duties, just as long as you are traveling more than 100 miles away from home.

Combat Pay

The location and the kind of service you complete will influence your entitlement to selected deduction and in some case exemption on your US expat taxes.

Are you serving in a combat zone as an enlisted person (or a warrant officer) for a part of a month? If that´s the case, you may be eligible to exclude all your military pay for that month. An even better news is that excluded income can be used as earned income in order to claim your Earned Income Tax Credit.

Married Filing Jointly

You do not need to lose this filing status when your spouse if you´re away from you significant other. Make sure to use a power of attorney if your spouse is not available for signing.

Uniform Maintenance Cost

It is possible that military regulations disallow wearing your uniform when off-duty. In this situation, keep track of the costs of uniforms maintenance in order to deduct them (reduced by any reimbursements or allowance)

Reserve Officers´ Training Corps (ROTC) Students

While active duty pay is taxable, subsistence allowance paid to ROTC students are NOT taxable if the students are partaking in advanced training.

Returning To Civilian Life

Looking for work is another opportunity to reduce your tax liabilities. Keep a receipt trail of your traveling expenses, resume preparation fees or agency placement. Your unreimbursed moving expenses to start work in a new job location may also deductible if you satisfy certain tests.

Need More Information on US Expat Tax for Army Personnel?

Please do not hesitate in contacting us should you need any additional information with regards to US expatriate. Don´t worry, we´re here to help.

About Chaz Attamah

Chaz Attamah is an individual and business US Tax CPA. He plans and provides compliance services to US expatriates and local businesses with operations in the US at ClarionBridge Consulting Group. Please do not hesitate to contact him for any of your US tax question at c.attamah@clarionbridge.com.
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