Serving in the military comes with challenges for both the service member and his or her family. Because of these challenges, military families get certain tax breaks which are not available to others. In this article we will cover some of the tax benefits which are available specifically to military families.
More Time to File
If you were serving in a combat zone during the time you were supposed to file your taxes, you have to file within 180-days from the last day you were in the combat zone. Additionally, if you were hospitalized as a result of being in the combat zone, you have to file within 180-days from when you were released from the hospital.
First-Time Homebuyer Credit
Most people are unable to claim the first-time homebuyer credit if they bought their home after 2011. However, under certain circumstances, military families may be able to claim the first-time homebuyer credit if they bought a home during 2011.
Home Sale Tax Break
Civilian homeowners usually need to live in their homes between two to five years in order to claim tax free profits of either $250,000 if filing single or $500,000 if married and filing jointly. Military families only have to live in their homes two of the preceding ten years if they meet certain qualifications. They have to be on qualified extended duty or living in government housing in order to qualify for this tax break.
People who serve in the military make numerous sacrifices. These tax breaks are designed to help balance out the sacrifices these brave men and women make for our country.
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