My husband is the smart one in our family when it comes to saving money. I can earn it but can spend it just as quickly. I thought some of you that are great with money, might appreciate his tax tips for those who have spent time in a combat zone.
The US Internal Revenue Service (IRS) provides a wealth of resources, questions & answers, and forms for military personnel - Tax Information for Members of the U.S. Armed Forces.
While reading through the materials on the IRS website, I found one tidbit that I had never previously known. Troops serving in a combat zone do not need to pay federal excise taxes on telephone calls from a combat zone.
This exemption can be accomplished in two ways. If possible, the troop can send certification to the telecommunications service provider in advance and have the excise tax removed from any charges. In my opinion, that takes some advance planning and possibly more legwork than can be achieved from a combat zone. The second way is to request a refund from your federal income taxes, after the fact, when you file your personal taxes - using IRS Form 8849 and its Schedule 6.
Every dollar counts… take advantage of this if you can.
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