Tax Exemptions For the Military

The tax exemptions of the armed forces can be very confusing for those who are not aware of it. Nevertheless, a member of the armed forces should understand this privileges to enjoy it and maximize their money in other essential ways.

A soldier can get his/her tax exemption for his/herself, partner as well as every person that's qualified as the member's dependent. On the other hand, if another person, who is also paying taxes claims an exemption for the military person or his/her partner, the armed force member can no longer get an exemption on his/her tax return. And, if the soldier already get an exemption for his/her dependent, the dependent can no longer claim an exemption on his/her tax return.

If the member of the armed forces would like to claim an exemption for his/her dependent, the service person must present one the following requirements: (1) individual taxpayer identification number (ITIN), (2) social security number (SSN) (3) adoption taxpayer identification number (ATIN) for every dependent for every dependent. Lacking of any of said requirements, the claim for exemption may not be granted.

When one of these requirements is available for reference, the member of the armed forces can only get an exemption for his/her dependent when he/she passes the five tests . These five tests are as follows:

a. Citizen or resident test - a dependent should be an American citizen or resident or a resident of Canada or Mexico.

b. Gross income test - the dependent should have a gross earnings of less than $2800

c. Relationship or member of household test - the dependent must be related to the service person that does not live with the service member.

d. Joint Return Test - the dependent must have not filed any joint return.

e. Support Test - the dependent must obtain more than half of his/her support from the service person in the year.

There are lots of benefits for our reputable men and women in uniform. They only need to know and understand it to make the most of their income and be able to help their loved ones in their day to day living.