If you are a veteran, you may be entitled to certain tax breaks. While veterans must pay taxes on their regular earned military and veteran pay, there are other areas that they do receive tax breaks.
If you are a military veteran, here is a look at what you need to know:
Certain veterans may be entitled to property tax exemptions. Here is a look at each exemption so that you can determine if you qualify:
Real Property Tax Exemption: If you are a veteran you may qualify for a real property tax exemption. When you purchase property with certain funds you may be able to get a tax exemption on part of the purchase price.
Cold War Veterans Exemption: If you are a veteran who served during the Cold War period and own residential property you may be entitled to a reduced property tax bill. You would need to check with the municipality where you live as every town, city, village, etc. has the right to choose whether or not they participate in the tax exemption.
Alternative Veterans Exemption: If you are a Veteran that served during wartime or if you are a veteran who was honored with an expeditionary medal you may also be eligible for a reduction in your property tax bill. Again, you will need to check with the municipality you live in to see if they honor the tax exemption.
It is important to note that Veterans cannot double dip when it comes to property tax exemptions. In other words, you can only claim one of the above exemptions.
Veterans may also be eligible for other tax benefits including:
Active military members are also entitled to a number of tax benefits. They include:
If you plan to claim any military tax benefit you will need to show proof of your military status. Make sure you have your documentation ready to go.
Retired and active military may be entitled to other tax break benefits as well. If you are unsure of what tax breaks you may qualify for, your best bet is to consult with a tax preparer who specializes or is at the very least familiar with tax issues relating to active or retired military members.
This post was published on November 11, 2011