Income Tax Filing Extensions

Question: Do I need to file an extension for my Fed Income tax if i am serving in Iraq?

Not only that if I do can someone tell me what kinds of things are considered deductions? I am not really sure what can be a deduction so a little help would be AWESOME!

Answer: First off, I just want to say that it’s the most boneheaded idea of government to make active duty soldiers pay tax. It’s only common sense to give you all a break, but I guess that’s politicians for you.

Deductions can take many forms. The two most common deductions are the standard child/married couple deduction, and the mortgage interest deduction.

Otherwise I assume most of your on-the-job expenses are taken care of (though with the current administration, who knows anymore) so you’re probably bette off taking the standard deduction.

As for when you have to file, see this:

“Soldiers Get Special Protection from the IRS

Active-duty military personnel in combat zones receive certain tax breaks and privileges that help keep their minds on the job at hand. As a member of the military, you are eligible for an interest-free extension to pay your income taxes because service in [Iraq] and other locations may have seriously impaired your ability to pay or file a return. The extension lasts for the initial period of service plus six months and covers a soldier’s spouse as well, regardless of whether they file joint or separate returns. The extension applies only to federal income taxes. Individuals serving in a combat zone as support for the U.S. Armed Forces, such as Red Cross workers, accredited correspondents and civilian personnel acting under the direction of the U.S. Armed Forces are also entitled to the extension.

All active-duty pay earned by U.S. armed forces personnel performing duties in a combat zone is not subject to federal income tax. Soldiers are still obligated to pay social security and Medicare taxes. Active duty pay is not taxed in the state in which military personnel are currently stationed, only in their official home state of record. Most states exempt all or part of active duty pay.

Calling home is also encouraged, because telephone calls placed to the United States from a combat zone by a member of the U.S. Armed Forces are exempt from the federal excise tax on toll telephone service. If you already paid the excise tax, you can file IRS Form 8849 to obtain a refund.

Combat zone military personnel, still under the combat extension, are eligible to make qualified contributions to an IRA for the 2005 tax year after April 15, 2006. U.S. Armed Forces personnel who are entitled to a refund but who do not file until they return home from combat duty will receive interest on the refund amount from the IRS. However, the tax return must be filed within the six-month extension window to be eligible for the interest payment. ”

Hope this helps.

Alabama Revenue Department offers tax filing extension for state’s tornado victims

MONTGOMERY — The state Department of Revenue today granted automatic tax filing extensions to Alabama taxpayers affected by the tornadoes that devastated the state last week.

Getting More Time to File Your Income Tax Return