Questions and Answers
Which tax benefit is not available to members of the armed forces stationed in the United States?
Combat zone tax exclusion
True or false: Members of the armed forces stationed overseas are not eligible for any tax benefits.
False
Which group of military members may be eligible for the same tax benefits as active-duty members?
National Guard and Reserves
True or false: Combat pay is taxed for those serving in combat zones.
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Which tax benefit may be available to members of the armed forces stationed overseas?
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True or false: National Guard and Reserves are not eligible for the same tax benefits as active-duty members.
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True or false: The benefits offered by IRS to members of the armed forces include a childcare tax credit.
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Which tax benefit can help with childcare costs?
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Which type of pay is not taxed for those serving in combat zones?
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True or false: Members of the armed forces can claim both the education tax credit and student loan interest deduction at the same time.
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Study Notes
- IRS offers tax benefits to members of the armed forces to offset costs of serving in the military
- Benefits include combat zone tax exclusion, housing allowance exclusion, dependency tax exemption, education tax credit, and student loan interest deduction
- National Guard and Reserves may be eligible for same benefits as active-duty members
- Members stationed overseas may be eligible for additional tax benefits
- More information available on IRS website
- Tax benefits can help with travel, housing, and childcare costs
- Combat pay is not taxed for those serving in combat zones
- Housing allowance is not taxed for those stationed away from home of record
- Education tax credit and student loan interest deduction available for those enrolled in school
- Consult with tax professional for any questions or concerns.
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