Hello, everyone. I hope you had a great weekend. So we are back to another week of financial topics, and today is the day that I cover the topic of taxes. So here we are.
I decided to do a different post today. Today is specifically for our military men and women and what they can do come tax time. I found this article on the Fox Business website and it has some really great military tax tips. Take a look at the tip that is found below and you will see what I mean.
Generally, you can deduct some portion of the contributions you make to your traditional individual retirement account (IRA) for the year. However, if you or your spouse were covered by an employer-maintained plan at any time during the year then not all of these deductions may be eligible. According to the IRS, Armed Forces members (including reservists on active duty for more than 90 days during the year) are considered covered by an employer-maintained retirement plan.
Keep in mind that military personnel qualify for additional time to make contributions to an IRA. It is also important to note that even though combat pay is nontaxable, you must calculate it as part of your limits on IRA contributions and deductions of IRA.
If you have been in the military or you know of someone who is in the military, this is definitely an article that is helpful. Read the rest of the article on the website and you are going to find a lot of great tips that can be used by military personnel for filing their taxes. A military member’s life is hard enough. They should be able to have some advice with their taxes and give them one less thing to worry about.
I truly hope that this article can help at least one of my readers. Please, if you know of someone who is in the military, pass it on. I want to help as many military men and women as I can with this information. Have a great day and I will see you tomorrow with my next post.