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Money-hungry states, cities tax trolling

Memorial Day thanks

Placing flags Arlington National Cemetery Memorial Day originated just after the Civil War as Decoration Day. It was created as a way to remember those who had fallen in those divisive battles.

Today it is a federal holiday held on the fourth Monday in May. And when the name was changed, the day's commemoration was expanded. It now is a time to recognize the sacrifices of all U.S. military members.

To those who have given their all for all of us, thank you on this Memorial Day and every day.

Photo by Adam Skoczylas,
www.Army.mil (Flickr/Creative Commons)

Military tax treatment: Our tax code also recognizes the special concerns of military personnel.

IRS staff discuss in this MP3 podcast some service-specific tax issues, such as military VITA sites. These volunteer tax preparation programs offer military men and women help, for example, in complying with combat pay considerations and filing extensions.

Military.com provides more information on the combat pay exclusion.

This Bankrate.com story offers an overview of the major military tax laws, such as filing deadlines, treatment of combat pay, special rules for computation of the Earned Income Tax Credit (EITC) or determining how much to put into a retirement account and tax breaks for military homeowners who are forced to sell because of redeployment.

Many of these same tax topics also are covered in this Military Money article.

The IRS also maintains a special Web page that covers a wide array of tax concerns for members of the armed forces.

You also can find additional general information in IRS Publication 3, Armed Forces' Tax Guide.

Don't forget that some state tax provisions apply to active duty service personnel and veterans. Military.com maintains a Web page that lists state tax department info and notes any specific tax laws regarding military earnings and retirement income.

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