Online Military tax preparation. Get information relating to online military tax preparation and military tax relief act. Find tax information for members of U.S. Armed force.
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Want Tax ID Number or Tax Return Copy?
Need a Tax Identification Number?
A Tax Identification Number or TIN is an identifying number used for tax purposes in the United States. It may be assigned by the Social Security Administration or by the IRS.
A business need a Federal Tax Identification Number or Employer Tax Identification Number, so that they can maintain their own image or entity in the market. It is to be noted that, the tax ID number could not be transfer in case of the transferring of any business. If the structure or ownership would be changed then a new tax ID number is required for the business. But above all you have to collect the relevant information to get an EIN.
Need a Copy of Past Tax Return?
Taxpayers have two easy and convenient options for getting copies of their federal tax return information — tax return transcripts and tax account transcripts — by phone or by mail.
If you need a photocopy of a previously processed tax return and attachments, complete Form 4506, Request for Copy of Tax Form, and mail it to the IRS address listed on the form for your area. Copies are generally available for the current and past 6 years.
Online Tax Return Brings Appliance To Your Doorstep
Tax return online has done away with the concept of voluminous paperwork, long hours in the line to acquire the forms in the first place and then submit the same to the state or local tax collection agency. The internal revenue service prepares the forms that are then collected by the tax filers, filled and submitted for tax return. As all financial documents like profit and loss statements, balance sheets, trail balances and other financial statements are required to be in perfect order for filing tax return the expertise of a competent accountant is essential for any individual or business filing tax return. Nowadays as all such details and financial records are usually prepared online with the use of specially designed accounting software.
Hence filing Tax Returns online makes it much more convenient as all the documents required are already stored online. Also the process of filing tax return online does not require the cumbersome paperwork which was earlier an essential part of any work related to tax preparation and tax return filing. As the tax season approaches every business and individual starts preparing for the ordeal of getting all their financial records in place and try to hire the best certified public accountant available. The process of filing tax return online has made it possible to locate an accountant through the internet and send him the required documents through the internet itself. Many accounting websites provide the option of filing tax return online and one can simply visit these sites, verify the authenticity of the website and the accountants involved and simply file your tax return online.
Almost every individual and firm is in favor on the process of filing tax return online as it saves much time and effort and enables the individual to concentrate on his core business and utilize these resources in other business areas. Also every firm offering the service of filing tax return online also has the facility of calculating the exact tax amount. Also the fees charged by a firm filing tax return online on your behalf will have nominal charges as compared to the amount which would otherwise have to be paid to the in-house staff. Hence, filing tax return online works out to be a convenient solution for all involved.
Conventional Way for Tax Filing
The easiest and quickest way to file a return and obtain a refund, is to do this electronically--a practice already used by more than half of all taxpayers. The conventional way of Free IRS efile tax has been opposed by online tax filing systems in recent times. Filing online will allow you to get your tax refund in as little as 10 days.
The process of filing taxes online is simple and trouble free. The customer first prepares his tax papers personally or approaches professional tax consultants to do so on his behalf. After the tax papers have been prepared they can be effortlessly filed through an IRS e-file provider. Filing can be done online as well, but if an individual is not sure about the mechanics, it is better to seek professional guidance. Usually most tax experts will be licensed IRS e-file providers. The relevant documents are signed and retained by the customer for future reference. The IRS e-file provider then files the returns electronically on the behalf of the customers. Next, the IRS e-file provider sends the customer an acknowledgment mentioning the current status of the filing process.
Online filing eliminates the need for going through tiring steps of rushing to the local IRS offices and post offices and waiting in never ending queues to post the papers before the due date. Office hopping has been completely eliminated. The only thing required is a reliable computer and Internet connection. Mistakes and errors can be corrected online in comparatively less time. Online tax filing has reduced the time gap prior to receiving Income tax refunds and papers can be printed to maintain precise records for future reference. Online tax filing also facilitates tax payments using credit cards. It has reduced back office processing time considerably.
Join the millions of people who have discovered how easy, online tax filing can be. The cost will be much less, your tax forms will get to the IRS with no hand-written errors, and you'll get your tax refund in as little as 10 days.
Military personnel and their families get free tax help!
The military also has a strong Volunteer Income Tax Assistance (VITA) Program. The Armed Forces Tax Council (AFTC) consists of the tax program coordinators for the Army, Air Force, Navy, Marine Corps, and Coast Guard. The AFTC oversees the operation of the military tax programs worldwide, and serves as the main conduit for outreach by the IRS to military personnel and their families.
Marines, airmen, soldiers, sailors, and guardsmen, and their families worldwide receive free tax preparation assistance at offices within their installations. These VITA sites provide free tax advice, tax preparation, and assistance to military members and their families. They are trained and equipped to address military specific tax issues, such as combat zone tax benefits and the effect of the new Earned Income Tax Credit (EITC) guidelines. The military tax programs generated over 332,988 electronic 2005 federal Income Tax Return.
Commanders support the program by detailing service members to prepare returns and by providing space and equipment for tax centers. The IRS supports these efforts by providing tax software and by training service members to prepare taxes at the military sites.
Most service members file their tax returns electronically at their tax centers and, by selecting direct deposit, receive their refunds in as little as one week. This combined effort ensures that service members receive free tax assistance from well-trained and equipped military tax preparers.
Items you need to bring to the VITA/TCE Sites to have your tax returns prepared.
Proof of identification
Social Security Cards for you, your spouse and dependents and/or a Social Security Number verification letter issued by the Social Security Administration
Birth dates for you, your spouse and dependents on the tax return
Current year’s tax package if you received one
Current year’s tax package if you received one
Interest and dividend statements from banks (Forms 1099)
A copy of last year’s Federal and State returns if available
Bank Routing Numbers and Account Numbers for Direct Deposit
Total paid for day care provider and the day care provider's tax identifying number (the provider's Social Security Number or the provider's business Employer Identification Number)
To file taxes electronically on a married filing joint tax return, both spouses must be present to sign the required forms.
It is extremely important that each person use the correct Social Security Number (SSN). The most accurate information is usually located on your original social security card. Each year hundreds of thousands of returns are delayed in processing or credit/deductions are disallowed because names and Social Security Numbers do not match Social Security Administration records. To prevent processing delays in paper returns and rejected electronically filed returns, volunteers check the accuracy of each Social Security Number, as well as the spelling of the name associated with the number. If you do not have a Social Security Number for you or a dependent you should complete Form SS-5, Social Security Number Application. This form should be submitted to the nearest Social Security Administration Office.
Information for Taxpayers Serving in the Armed Forces
The Internal Revenue Service reminds taxpayers serving in the military to take advantage of all tax exclusions and filing and payment extensions available to them.Exclusions:Members of the U.S. Armed Forces who serve in a combat zone or qualified hazardous duty area can exclude certain pay from income. Enlisted personnel, warrant officers and commissioned warrant officers can exclude:
Active duty pay earned in any month served in a combat zone.
Imminent danger/hostile fire pay and military pay earned while hospitalized as a result of wounds, disease or injury incurred in the combat zone.
A reenlistment bonus if the voluntary extension or reenlistment occurs in a month served in combat zone.
Pay for accrued leave earned in any month served in combat zone. (The Department of Defense must determine that the unused leave was earned during that period.)
Pay received for duties as a member of the Armed Forces in clubs, messes, post and station theaters and other non-appropriated fund activities earned in a month served in a combat zone.
Awards received for suggestions, inventions or scientific achievements because of a submission made in a month in a combat zone.
A commissioned officer (other than a commissioned warrant officer) may exclude pay according to the rules above, but the amount of the exclusion is limited to the highest rate of enlisted pay (plus imminent danger/hostile fire pay received) for each month during any part of which he or she served in a combat zone. For 2002, this limit was $5,532.90 and for 2003, it is $5,882.70.
Extensions:The IRS automatically extends the deadline for filing tax returns, paying taxes, filing claims for refund and taking other actions related to federal income tax for U.S. Armed Forces personnel serving in a combat zone. The IRS also extends the deadline for those in the U.S. Armed Forces deployed overseas away from their permanent duty station in support of operations in a qualified hazardous duty area but outside the qualified hazardous duty area. The deadline for filing returns, making payments or taking any other action with the IRS is extended for at least 180 days after:
The last day of qualifying combat zone service, or
The last day of any continuous qualified hospitalization for injury from service in the combat zone.
Combat ZonesA combat zone is any area the President of the United States designates by Executive Order as an area in which the U.S. Armed Forces are engaging or have engaged in combat. Usually, an area becomes a combat zone and ceases to be a combat zone on the dates the President designates by Executive Order.The following is a comprehensive list of combat zones:
The following locations (and airspace above) in the Persian Gulf area were designated as a combat zone beginning Jan. 17, 1991.The area includes the Persian Gulf, the Red Sea, the Gulf of Oman, the part of the Arabian Sea that is north of 10 degrees north latitude and west of 68 degrees east longitude, the Gulf of Aden and the total land areas of Iraq, Kuwait, Saudi Arabia, Oman, Bahrain, Qatar and the United Arab Emirates.
Kosovo area, beginning Mar. 24, 1999 — Federal Republic of Yugoslavia (Serbia and Montenegro), Albania, the Adriatic Sea and the Ionian Sea north of the 39th Parallel.
Afghanistan, beginning Sept. 19, 2001.Public Law 104-117 designates three parts of the former Yugoslavia as a Qualified Hazardous Duty Area, to be treated as if it were a combat zone, beginning Nov. 21, 1995 — Bosnia and Herzegovina, Croatia, and Macedonia.In addition, the Department of Defense has certified these locations for combat zone tax benefits due to their direct support of military operations in the Afghanistan combat zone (Operation Enduring Freedom), beginning on the listed dates:
Pakistan, Tajikistan and Jordan, Sept. 19, 2001
Incirlik Air Base, Turkey, Sept. 21, 2001
Kyrgyzstan and Uzbekistan, Oct. 1, 2001
Philippines, Jan. 9, 2002
Yemen, Apr. 10, 2002
Djibouti, July 1, 2002
Tax Assistance for Military Families; IRS.gov Page for Armed Forces
The Internal Revenue Service has created a new section on its Web site containing important information to help ensure members of the U.S. Armed Forces serving in a combat zone get all of the tax benefits available to them.The new section highlights several special tax provisions that apply to those in combat, which can include extensions for Tax Filling and paying taxes and exclusion of some military pay from taxes.The new Web section includes:
Questions and answers on exclusions, extensions and other tax benefits available to members of the Armed Forces serving in a combat zone.
Publication 3, Armed Forces’ Tax Guide, which covers the special tax situations of active members of the U.S. Armed Forces.
Several recent news releases and notices, including Tax Tip 2003-41, Reservists, New Enlistees May Get Deferral for Back Taxes; news release IR-2002-18, Tax Relief for Troops in Afghanistan Combat Zone; Notice 2002-17, Tax Relief for those Involved in Operation Enduring Freedom.
A special e-mail address for members of the U.S. Armed Forces, their spouses, authorized agents or representatives, which can be used to notify the IRS about someone serving in a combat zone.
"At this important time, our dedicated military personnel in combat zones should not be worried about tax issues," said IRS Acting Commissioner Bob Wenzel. "We want each of them to receive all of the tax benefits that they are entitled to. We want all of our servicemen and servicewomen — and their families — to know that we are here to help.
"Generally, enlistees up to warrant officers (including commissioned warrant officers) exclude all their military pay received for military service in a combat zone. For commissioned officers, the monthly exclusion is capped at the highest enlisted pay, plus any hostile fire or imminent danger pay received. For 2002, this limit was $5,532.90 and for 2003, it is $5,882.70. Amounts excluded from gross income are not subject to federal income tax.
The IRS automatically extends the deadline for filing tax returns, paying taxes, filing claims for refund and taking other actions related to federal income tax for U.S. Armed Forces personnel serving in a combat zone. The IRS also extends the deadline for those in the U.S. Armed Forces deployed overseas away from their permanent duty station in support of operations in a qualified hazardous duty area but who are outside that area.
The deadline for filing returns, making payments or taking any other action with the IRS is extended for at least 180 days after:
The last day of qualifying combat zone service, or
The last day of any continuous qualified hospitalization for injury from the combat zone. The IRS is currently working with the military to obtain information about reservists and regular military personnel serving in combat areas. During this interim period, people in the military, their spouses or their authorized representatives have several options to claim the filing extensions or filing exclusions:
When filing returns, mark “Combat Zone” at the top of the form along with the date of deployment.
Contact the IRS through the special e-mail address at IRS.gov. Correspondence should include the name, stateside address, date of birth, and date of deployment of the service member. (No Social Security numbers should be included in the e-mail.) The IRS emphasizes only military-related e-mails should go to this address. Calls can also be made to the main IRS help line at 800-829-1040.
These two steps also apply if a notice inadvertently goes to an individual serving in a combat zone or his or her spouse. The notice can be deferred by following the e-mail steps or by sending the notice back to the IRS marked with the words “Combat Zone” and the date of deployment. The IRS plans to take additional steps and provide additional guidance on issues involving military personnel and combat zones. This new information will also be posted to the Armed Forces page on IRS.gov.
New Tax Scam Targets Families of Armed Forces Members
Although the federal Free Tax Filing season ended on April 15, the Internal Revenue Service continues to see new tax scams. Two new schemes target families of those serving in the Armed Forces and e-mail users. In both schemes, people represent themselves as being from the IRS. The IRS has seen isolated instances of the scam that targets the families of those serving in the Armed Forces.
The IRS warns consumers to beware of any variation of a scenario in which a telephone caller posing as an IRS employee tells a family member that he is entitled to a $4,000 refund because his relative is in the Armed Forces and then requests a credit card number to cover a $42 fee for postage. The scammer provides an actual IRS toll-free number as the call back number in order to make the call seem legitimate. However, the scammer then makes numerous unauthorized purchases with the victim’s credit card number.
Genuine IRS employees who call taxpayers do not ask for credit card numbers or request fees for payment of a refund.
“Tax season may be over, but tax scams continue,” said IRS Commissioner Mark Everson. “These types of shameless schemes hold out the allure of easy money. The IRS warns taxpayers to be on the lookout for these schemes. And we urge taxpayers to remember that the IRS does not charge for refunds or solicit credit card information.”
In another scheme, victims receive an e-mail that appears to be from the IRS. The e-mail contains links to a non-IRS Internet Web page that asks for personal and financial information. Such information could be used to steal the respondent’s identity and get access to sensitive financial data or accounts.
Identity thieves can use someone’s personal data to:
Take over his or her financial accounts,
Run up charges on the victim’s existing credit cards,
Apply for loans, credit cards, services or benefits in the victim’s name, or
File fraudulent tax returns.
The IRS does not request sensitive personal or financial data by e-mail.
Both of these schemes are being reviewed by the Treasury Inspector General for Tax Administration, which is authorized to investigate the misuse of the IRS name, insignia, seals and symbols.
These are hardly the first scams involving impersonation of an IRS employee or misuse of the IRS name. In the past, scammers have impersonated IRS agents by going to taxpayers’ houses to “collect taxes.” Genuine IRS special agents, field auditors, and collection officers carry picture IDs and will normally try to contact the taxpayer before they visit.
In another scam, the scheme promoters sent out fictitious bank correspondence and phony IRS forms in an attempt to trick the recipients into disclosing their personal and banking data. The scheme promoters then used the information to impersonate the taxpayer and gain access to the taxpayer’s finances.
Genuine IRS forms do not ask for sensitive personal and financial data except in very special circumstances.
Military Tax Relief Act for Military Family
On Nov. 11, 2003, President Bush signed into law the Military Family Tax Relief Act of 2003. Among its provisions are these tax breaks related to military personnel:
Death benefits
The death gratuity paid to survivors of deceased Armed Forces members rises to $12,000 and is not taxable (was $6,000, with $3,000 tax-free). Effective for deaths occurring after 9/10/2001. Taxpayers amending a return to use this provision should put “Military Family Tax Relief Act” in red in the top margin of Form 1040X.
Sale of principal residence
A taxpayer on qualified official extended duty in the U.S. Armed Services or the Foreign Service may suspend for up to 10 years of such duty time the running of the 5-year ownership-and-use period before the sale of a residence. This applies when the duty station is at least 50 miles from the residence – or while the person is residing under orders in government housing – for a period of more than 90 days or for an indefinite period. This election, which is an option for the taxpayer, applies to only one property at a time. Retroactive for home sales after May 6, 1997. Although taxpayers normally have only three years to file an amended return, qualifying taxpayers who sold a residence before 2001 had until Nov. 10, 2004, to amend their returns for this purpose. Military personnel and individuals in support of the U.S. Armed Forces serving in a combat zone during the period Nov. 11, 2003, through Nov. 10, 2004, may be entitled to additional time to amend their returns. Taxpayers amending a return to use this provision should put “Military Family Tax Relief Act” in red in the top margin of Form 1040X.
Deduction for overnight travel expenses of National Guard and Reserve members
Reservists who stay overnight more than 100 miles away from home while in service (e.g., for a drill or meeting) may deduct unreimbursed travel expenses (transportation, meals and lodging) as an above-the-line deduction. The deduction is limited to the rates for such expenses authorized for federal employees, including per diem in lieu of subsistence. Effective for tax years after 2002. Taxpayers use Form 2106 or 2106-EZ to figure the deduction amount and enter it as an adjustment to income on Form 1040, line 24. For 2003, they carried it as a “write-in” to Form 1040, line 33, put the letters “RC” and the amount on the dotted line and included this subtraction in the entry for line 33.
Dept. of Defense Homeowners Assistance Program
Payments made after Nov. 11, 2003, under this program to offset the adverse effects on housing values of military base realignments or closures will be excludable from income as a fringe benefit.
Combat zone extensions expanded to contingency operations
The various extensions granted to combat zone participants to file returns or pay taxes will also apply to those serving in Contingency Operations, as designated by the Secretary of Defense. Effective for any acts whose deadline has not expired before Nov. 11, 2003.
Dependent care assistance programs
Clarifies that dependent care assistance programs for military personnel are excludable benefits. Effective for tax years after 2002.
Military academy attendees
The ten percent tax on payments from a Qualified Tuition Program or Coverdell Education Savings Account that are not used for educational expenses does not apply to attendees of the U.S. Military, Naval, Air Force, Coast Guard or Merchant Marine Academies, to the extent the payments do not exceed the costs of advanced education. Effective for tax years after 2002.
New Law Expands IRA Options for Military
Members of the military serving in Iraq, Afghanistan and other combat zone localities can now put money into an individual retirement account, even if they received tax-free combat pay, according to the Internal Revenue Service.
Under the Heroes Earned Retirement Opportunities Act, signed into law on Memorial Day, taxpayers can now count tax-free combat pay when determining whether they qualify to contribute to either a Roth or traditional IRA. Before this change, members of the military whose earnings came entirely from tax-free combat pay were generally barred from using IRAs to save for retirement.
"The Heroes Earned Retirement Opportunities act is one more way to let our fighting forces in combat areas know that we support them," said IRS Commissioner Mark W. Everson. "This is a good way for people serving in combat zones to save more of their earnings for retirement."
In addition, the Heroes Earned Retirement Opportunities Act allows military personnel who received tax-free combat pay in either 2004 or 2005 to go back and make IRA contributions for those years. Eligible military members will have extra time, until May 28, 2009, to make these special back-year contributions.
For those under the age of 50, the IRA contribution limit was $3,000 for 2004 and $4,000 for 2005. For those 50 and over, the limit was $3,500 for 2004 and $4,500 for 2005.
Taxpayers choosing to put money into a Roth IRA don’t need to report these contributions on their individual tax return. Roth contributions are not deductible, but distributions, usually after retirement, are normally tax-free. Income limits and other special rules apply.
On the other hand, contributions to a traditional IRA are often, though not always, deductible, and distributions are generally taxable.
Deductible or not, contributions to a traditional IRA must be reported on the return for the year made. Deductible contributions are claimed on Form 1040, 1040A or 1040NR. Nondeductible contributions are reported on Form 8606, which is normally attached to one of these individual return Forms.
If a return has already been filed for a particular year, contributions should be reported on an amended return, Form 1040x. Depending upon the circumstances, military personnel who choose to put money into a traditional IRA for 2004 or 2005 may qualify Fast Tax Refund.
Free Tax Help for the Military
If you, or your spouse, are a member of the military, you may be eligible to receive free assistance with the preparation and filing of your federal tax return. The U.S. Armed Forces participate in the Volunteer Income Tax Assistance Program. The Armed Forces Tax Council oversees the operation of the military tax programs worldwide, and serves as the main conduit for outreach by the IRS to military personnel and their families. The AFTC consists of tax program coordinators for the Marine Corps, Air Force, Army, Navy and Coast Guard.
Military-based VITA sites provide free tax advice, tax preparation, return filing and other tax assistance to military members and their families. The volunteer assistors are trained to address military-specific tax issues, such as combat zone tax benefits.
Military commanders support the program by detailing members of the military to prepare returns and by providing space and equipment for tax centers. The IRS supports these efforts by providing tax software and training.
To receive this free assistance, you should bring the following records to your military VITA site:
Valid photo identification
Social Security cards for you, your spouse and dependents or a social security number verification letter issued by the Social Security Administration
Birth dates for you, your spouse and dependents
Current year’s tax package, if you received one
Wage and earning statement(s) -Form W-2, W-2G, 1099-R
Interest and dividend statements (Forms 1099)
A copy of last year’s federal and state tax returns, if available
Bank routing numbers and account numbers for direct deposit
Total amount paid for day care
Day care provider’s identifying number
Other relevant information about income and expenses
If your filing status is Married Filing Jointly and you wish to file your 1040 Tax Return electronically, both you and your spouse should be present to sign the required forms. If it isn’t possible for both to be present, a valid power of attorney that allows tax preparation can be used to sign and file the return.
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