Do not forget that it is National Military Appreciation Month and the IRS has just sent a reminder to thousands of Veterans and Members of the Military. In this case, the Internal Revenue Service wants to ensure that they know they could receive a credit.
Some Members of the Military and Veterans may be eligible for the EITC (Earned Income Tax Credit). Undoubtedly, it will be a great way to get extra money to support your family if you are going through a rough patch.
IRS’ EITC ELIGIBILITY
For your information, the Earned Income Tax Credit supports low- to moderate-income Veterans and Members of the Military. In this way, they can get a tax break. First of all, EITC can help you reduce the amount of tax you owe the IRS.
Secondly, it could also increase the tax refund amount you could get from the IRS. Therefore, it is the perfect combination if you are running out of money due to high inflation, soaring prices, and exorbitant mortgage interest rates in the USA.
Do not forget that the amount of your EITC may vary. For example, if you have a disability, have children, dependents or meet other requirements it may be much higher.
IRS HAS SET 2 RULES TO GET EITC IF YOU ARE A MILITARY MEMBER
The Internal Revenue Service explains that the 2 rules to claim the Earned Income Tax Credit as a member of the military are:
- if you were stationed outside of the United States of America.
- if you get nontaxable military pay. For example, housing allowance, combat pay or subsistence allowance.
Bear in mind that if you are a member of the military and you or your spouse receive nontaxable pay from the Armed forces, you will not have to include it as earned income on your federal taxes. Visit this I.R.S. website to see if you qualify: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant
