Tax Preparation Services

For Military and Public Service Members

Did you know that we deliver tax preparation services for military and public service members?

Tax Preparation Services

May is National Military Appreciation Month, and the Internal Revenue Service wants members of the military and their families to know about the many tax benefits available to them.

Each year, the IRS publishes  Publication 3, Armed Forces Tax Guide, a free booklet packed with valuable information and tips designed to help service members and their families take advantage of all tax benefits allowed by law.

This year’s edition, geared to the 2022 return, is posted on IRS.gov. Below are some of the available tax benefits. Did I mention that we specializes in tax preparation and bookkeeping services for military and public service members?

Tax Preparation Services For Military Members

·        Combat pay is partly or fully tax-free.

·        Reservists whose reserve-related duties take them more than 100 miles from home can deduct their un-reimbursed travel expenses on Form 2106 or Form 2106-E-Z, even if they don’t itemize their income tax deductions.

·        Eligible un-reimbursed moving expenses are deductible expenses on Form 3903.

·        Low-and moderate-income service members often qualify for such family-friendly tax benefits as the Earned Income Tax Credit, and a special computation method is available for those who receive combat pay.

·        Low-and moderate-income service members who contribute to an IRA or 401(k)-type retirement plan, such as the federal government’s Thrift Savings Plan, can often claim the saver's credit, also known as the retirement plan savings contributions credit, on Form 8880.

·        Service members stationed abroad have extra time, until June 15, to file a federal income tax return. Those serving in a combat zone have even longer, typically until 180 days after they leave the combat zone.

·        Service members may qualify to delay payment of income tax due before or during their period of service. See Publication 3 for details including how to request tax relief.

Service members who prepare their own return qualify to electronically file their federal return for free using IRS Free online income taxes File.

In addition, the IRS partners with the military through the Volunteer Income Tax Assistance program to provide free tax preparation to service members and their families at bases in the United States and around the world. 

Benefits of Tax Preparation Services

Income Tax Filing

A tax preparer plays a crucial role in helping individuals and businesses navigate the complexities of the tax system. Here are several benefits that a tax preparer provides:

1. Expertise and Knowledge: Tax preparers possess extensive knowledge of tax laws, regulations, and updates. They stay up-to-date with the latest tax codes, changes, and deductions, ensuring that tax returns are accurately prepared. Their expertise helps individuals and businesses maximize their deductions and credits while minimizing the risk of errors or audits.
2. Time Savings: Tax preparation can be a time-consuming and daunting task, especially for individuals with complex financial situations or businesses with multiple sources of income. A tax preparer providing tax preparation services efficiently handles the process, saving individuals and businesses valuable time. They gather necessary financial information, complete the required forms, and ensure that all filing deadlines are met, relieving taxpayers from the stress of navigating complex tax documents and calculations.
3. Accuracy and Error Prevention: Tax preparers are trained professionals who focus on accuracy and attention to detail. They have the expertise to navigate complex tax forms and ensure that all information is entered correctly. By relying on a tax preparer, individuals and businesses reduce the risk of making mistakes that could result in penalties, audits, or other issues with tax authorities.
4. Maximizing Deductions and Credits: Tax preparers have in-depth knowledge of the tax code and are skilled at identifying eligible deductions and credits that individuals and businesses may overlook. They work closely with taxpayers to understand their financial situation and leverage all applicable deductions and credits to minimize tax liability and potentially increase refunds.
5. Audit Support and Representation: In the event of an audit or inquiry from tax authorities, a tax preparer can provide invaluable support and representation. They are familiar with the audit process and can assist in gathering required documentation, communicating with tax authorities, and ensuring that taxpayers' rights are protected. Having a tax preparer on hand can alleviate stress and provide reassurance during potentially challenging situations.
6. Future Tax Planning: Tax preparers offer valuable insights and guidance for future tax planning. They can review taxpayers' financial situations, identify potential areas for improvement, and provide recommendations to optimize tax strategies in the long term. By working closely with a tax preparer, individuals and businesses can make informed decisions to minimize tax liabilities and maximize financial efficiency.

It's important to choose a qualified and reputable tax preparer. Look for certified professionals, such as Certified Public Accountants (CPAs) or Enrolled Agents (EAs), who adhere to professional standards and ethics. By utilizing the expertise of a tax preparer, individuals and businesses can navigate the complexities of the tax system with confidence, ensure compliance, and potentially save money through optimized tax planning and deductions.

Summary

If you know of any Military or public service members needing help with getting the most out of the income tax deductions available to them, please let them know it would be an honor to help them.

At Horne Financial Services we specialize in tax preparation and bookkeeping services for military and other public service members.

Author

Stephanie Horne is an experienced bookkeeper and Enrolled Agent. She is the owner and founder of Horne Financial Services in Rohnert Park, California along with this website and has over 20 years of in person, virtual and outsourced bookkeeping/accounting and tax preparation experience with businesses of all sizes.

Her love and passion is to work individually with business owners and families to help alleviate any financial stress or concerns by helping them to understand and have better control of their income, deductible expenses, cash flow, and tax liabilities.

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