Military Tax Relief: Everything to Know About It

Serving in the army is one of the most honorable and difficult things that one can do for their country. While nothing can make up for what this means and the losses it can cause, you should know that, as a taxpayer, you can benefit from certain military tax relief programs offered by the government.

It’s important to mention that in order to be eligible for these programs you must be currently active in or retired from the Army, Navy, Marine Corps, Air Force, Coast Guard, Space Force, the military reserve, or the National Guard. Some of the benefits that they can bring include postponement of deadlines, payments that are partially or totally tax-free, deductions, and many others. In this article, we will be discussing military tax relief programs and what you should know if you want to apply for one or more of these programs.

How Does Military Tax Relief Work?

Combat pay is not taxable

Firstly, you should know that combat pay is not taxable and doesn’t count as income. So, you have no obligation to include it as such. However, in case you want to apply for the Earned Income Tax Credit, a good idea would be to include it. By doing this, you can avoid reporting no income and possibly not qualifying for an EITC. Also, you are not allowed to include only a portion of your combat pay. It’s either the total amount or none of it.

As an enlisted member, commissioned warrant officer, or warrant officer, you can also exclude some other things from your taxable income. Some of those include student loan repayments, reenlistment bonuses, and accrued leave pay.

Filing deadlines are extended for those active in combat zones

If you are a member of the military who is serving in an active combat zone, the IRS offers you 180 extra days for all tax duties including filing and paying. This may not be a military tax relief solution but it’s definitely helpful when it comes to your tax-related activity.

The interest rate is capped at 6%

As a member of the military, the maximum interest rate on any owed amount cannot be over 6%. However, this only applies to the interest charged while you are active in the military and if your service affects your payment ability.

Death benefits are not taxable

As a survivor of an armed forces member, you will receive a $100,000 gratuity that is not taxable. If you are a survivor of a retiree military member whose death was caused by service, you will also get this benefit within 120 days of their retirement.

Tax liabilities are forgiven in case of death

A military member who dies in a combat zone will be forgiven all tax liabilities they may have owed to the IRS. In case that tax was already paid, the survivors will get a full refund.

Deductible moving and travel expenses

A reservist who travels over one hundred miles because of their service can have these expenses fully deduced. Also, as an active military member, you can have all of your moving expenses deduced in case you need to change your location because of your service.

Other military-related deductions

There are other military-related deductions that you can enjoy as part of military tax relief from the government. For example, the cost and maintenance of your uniform, which you cannot wear while off duty, can be deduced. Also, certain job-related expenses can be deduced if you have chosen to leave military life and pursue another career.

Additional Features to Consider

There are some other important things to consider as part of the military tax relief that the government offers. For example, in the case of disabled veterans, if they benefit from a disability percentage increase from the Department of Veteran Affairs, they can get a tax refund. The same goes for a veteran who has been disabled during combat and benefits from Combat-Related Special Compensation.

Some programs have to do with dependent care assistance too. They are meant to help the veteran or their family pay for care and are not part of the military member’s taxable income. The same goes for certain education benefits that a military member or a veteran enjoys. These are not taxable either.

How We Can Help You Decide

Choosing the right option out of all of the above in case you are serving or have served in the military can be an overwhelming process. Thankfully, our website is meant as a way for you to pick the right tax relief company and get rid of the stress of doing it all yourself. We have extensive reviews and truthful ratings for all the best tax relief firms in the country. This way, it should be a lot easier for you to start getting interested in military tax relief and enjoy all the benefits that you are eligible for. Just compare these firms, look at what they offer, and establish which one could be a good fit for your situation.

Apart from that, our website also offers a large number of educational resources in the form of articles that will offer you important pieces of information on tax relief. Everything you need to know is one click away for you to discover and research. The website is user-friendly, offers clear and verified information, and was created as a way to provide information to people seeking tax relief advice.

Bottom Line

To sum it all up, military tax relief is just as important as any other type of tax relief program. Active or former military members deserve all of these benefits because these people are usually busy defending their country in various ways. If you are or have been part of the military, you must stay up-to-date on this topic so you can grasp all opportunities that you could possibly enjoy when it comes to military tax relief. After all, paying your taxes should be one of your last worries when you are in an active war zone trying to defend your country and save your life.

Alleviate Tax

Alleviate Tax is a trustworthy, hands-on tax relief company that has helped thousands of clients get control of their IRS tax debt. They follow a clear three-step process—free consultation, investigation, and resolution—so you always know where your case stands and what’s coming next. Many customers highlight how patient and professional the staff are, taking time to explain complex IRS issues in plain English and offering real reassurance during a stressful time. 

With an A rating and BBB accreditation, plus strong ratings across multiple review platforms, Alleviate Tax stands out for its transparent flat-fee pricing and focus on resolving cases in a reasonable timeframe instead of dragging them out. For people struggling with back taxes, wage garnishments, or unfiled returns, they’re a solid choice if you want a supportive team that walks you through the process from first phone call to final resolution.

Community Tax

Community Tax is a well-established, full-service tax relief company that works with clients nationwide on everything from IRS back taxes to audits, wage garnishments, and tax liens. They’ve been in business for over a decade and have helped tens of thousands of taxpayers resolve federal and state tax issues, often combining tax resolution with ongoing services like preparation, bookkeeping, and year-round planning.

The company stands out for its team of licensed professionals (CPAs, enrolled agents, and tax attorneys), its free initial consultation, and its reputation for affordability compared with many competitors, with typical total fees in the low-to-mid thousands depending on case complexity. Online reviews also reflect a generally positive customer experience: strong average ratings on major platforms and an A/A+ BBB profile highlight their professionalism, responsiveness, and ability to reduce stress during a very stressful time.

Overall, Community Tax is a solid choice if you’re facing serious IRS or state tax problems and want a supportive, full-service team to guide you from first consultation through final resolution. As with any tax relief firm, it’s still smart to review the engagement letter carefully and compare with at least one other provider, but many clients feel the peace of mind they provide is well worth the cost.

Priority Tax

Priority Tax Relief is a BBB-accredited tax relief company based in California that works with clients nationwide to resolve IRS and state tax problems, including back taxes, liens, levies, and wage garnishments. Their focus is on giving taxpayers a structured, guided path out of tax trouble rather than leaving them to navigate the IRS alone.

The firm emphasizes professional representation and accessibility: they offer a free initial consultation, use a simple multi-step process (evaluation, investigation, then resolution), and have a team that includes enrolled agents, CPAs, and a tax attorney to handle more complex cases. Many third-party reviews highlight friendly staff, clear explanations, and frequent updates that help reduce the stress of dealing with the IRS.

Priority Tax Relief also stands out for its credentials and reputation. The company maintains an A/A+ rating on BBB with very strong average customer scores, and multiple independent review sites describe it as a legitimate, well-established option in the tax relief space. While outcomes always depend on your specific situation, Priority Tax Relief is a solid choice if you’re looking for an experienced, supportive team to guide you from first consultation through final resolution.