Celebrating Memorial Day, and a Note on Military Tax Breaks

flagAs we look forward to some R&R this holiday weekend, and perhaps a cookout with family and friends, we remember that Memorial Day is a day to honor those Americans who gave the ultimate sacrifice. We also thank the men and women who are now serving in the Armed Forces.

Members of the military and their families have a number of tax breaks available. These include:

  1. Income exclusion of combat pay (within certain parameters);
  2. Extra time to file federal income tax returns: Until June 15 if serving abroad, or longer if serving in combat zone;
  3. More time to delay income tax payment due before or during service;
  4. Travel expense deduction for U.S. Armed Forces Reservists.

The IRS has posted more details online, including a “Military Tax Tips” video: https://www.youtube.com/watch?v=Co6cNQqJHx0

Memorial Day is one of the oldest Federal holidays. Historians trace the holiday’s beginnings to decoration of Civil War soldiers’ graves as early as 1861. First known as “Decoration Day,” the late May date was chosen because it was deemed the optimal time for flowers to be in bloom.

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Brady Ramsay

About Brady Ramsay

Brady is the owner of Ramsay & Associates. He specializes in financial statement preparation and personal, fiduciary and corporate tax and accounting. His professional experience includes seven years' experience for local and national CPA firms before joining Ramsay & Associates in 2006. He has a Bachelor of Accounting degree from the University of Minnesota Duluth. He is a Certified Public Accountant, a member of the Minnesota Society of CPA's, an Eagle Scout, as well as an active volunteer in the community.