April 15th is only a few weeks away and that means it’s time to talk about taxes. As a veteran, there are several tax benefits of which you can take advantage. When filing your annual tax return, it’s important to understand what tax deductions you qualify for. Here are a few tax benefits for veterans that you should explore.
First, you need to determine whether or not you’re eligible for tax benefits for veterans. To qualify, you must have served at least 24 consecutive months in the armed services and were not released with “dishonorable” discharge.
You may also qualify for tax benefits for veterans if you’re a:
- Child, or
Of a deceased or disabled veterans.
3 Tax Benefits for Veterans to Consider
Here are five tax benefits for veterans that are worth exploring as you file your taxes this year:
- Disability Pay: If you’re collecting disability compensation or disability pension, those benefits are exempt from state and federal income taxes.
- College Tuition: If you’re attending college under the G.I. bill, that aid is not taxable and you do not need to claim that money as income. But make sure to check the taxability of other aid with a tax professional.
- VA Life Insurance: If you have received a life insurance payment from a policy provided by the VA, those proceeds are not taxable.
3 Veteran Benefits that may be Taxed
Veterans are entitled to a lot of benefits, but not all veteran benefits are tax free. Here are three great veteran benefits that may still carry tax burdens:
- Retirement Pay: Servicemember with at least 20 years of service are eligible for retirement pay. This pay is taxable. However, there are a few exemptions.
- Disability Payments: Any lump sum disability payments made to veterans leaving the armed forces are taxable, according to the VA website.
- Healthcare Benefits: Veterans are eligible for VA-provided healthcare or they can opt for a tax credit in exchange for purchasing their own private health insurance.
To check on or apply for veteran benefits, visit eBenefits.va.gov