Serving in the military comes with numerous sacrifices and challenges, but it also provides substantial benefits and opportunities. One of the significant advantages that servicemembers should know and take advantage of is the various military tax benefits. In Prince William County, VA, the government has established tax breaks to help active military personnel, veterans, and their families save money and ease their financial burden.
State Income Tax Exemption
As a member of the military, your income earned while on active duty is exempt from Virginia state income tax. This exemption applies to military pay and any additional income earned from part-time jobs or rental properties. By taking advantage of this military tax benefit, you can keep more of your hard-earned money and effectively reduce your tax burden.
Tax-Free Combat Pay
One of the most significant military tax benefits that servicemembers receive is tax-free combat or hazardous duty pay. This means that all the compensation you earn, including basic salary, allowances, and bonuses, is excluded when calculating Virginia state taxes.
Delayed Tax Filing
Another military tax benefit that applies to servicemembers is the ability to delay the filing of taxes. Those deployed outside the United States for at least 90 days during the tax year can postpone filing their tax return until 180 days after leaving the combat zone. This can help military personnel avoid the stress of filing while deployed and provide extra time to gather necessary documents.
Military Retirement Pay
If you are a retired servicemember, your military retirement pay is also exempt from Virginia state taxes. You can claim a deduction for your military retirement pay on your Virginia income tax return. This benefit is available to all retired military personnel and does not have an age limit.
Property Tax Relief
Retired military personnel with 100% permanent and total disability ratings or unemployable ratings from service are eligible for property tax exemption or reduction. Additionally, unremarried surviving spouses of eligible veterans or servicemembers killed or wounded in action may qualify for this military tax benefit.
Trustworthy and Expert Tax Preparers
At Orion United Professional Tax Services, we understand the unique challenges that military personnel and their families face. From frequent relocations to deployments, your dedication to duty should not be overshadowed by the complexity of navigating the tax system. Let us help you maximize your military tax benefits and ensure you receive the financial rewards you deserve. Contact us today to learn how our professional team can assist you.