IMPORTANT : The information contained below is meant to aid the families of deployed military personnel. However, tax laws, rules and regulations change frequently. All information is accurate to the best of our knowledge at the time it was asked. If you have questions we urge you to contact your CPA tax professional (see Choosing a CPA & Free Referral Service ).

Q. Do I have to attach a copy of my power of attorney to my tax return?

A. Yes, it is always a good idea to attach a copy to your tax return. Many people attach orders as well.

Q. Does the W2 reflect Title 10 pay vs Title 32 pay?

A. Yes

Q. Are we sure the W2s are going to be right?

A. You can verify the accuracy of the W2 by comparing the total amounts to the amounts on your paystubs.

Q. What is combat pay?

A. After you get into the zone, anything that is earned is combat pay.

Q. Where do we specify what combat zone our spouse is in when I file the tax returns?

A. If paper filing, attach copy of orders. If e-filing, fill out on tax program. There will be a code near the W-2 data entry form. “Enduring Freedom” is the current campaign.

Q. Why are state taxes being taken out of my husband’s checks now that he is overseas?

A. State taxes are not supposed to be taken out of UT checks. This is a payroll error. You can file a new W-4 at any time and request that they stop.

Q. Regarding the EIC, do housing and rations need to be included as benefit when calculating EIC?

A. They should not be on your W-2, so they are not included in the figure that you use to calculate EIC

Q. Does the number of children I have affect my earned income credit?

A. No, it has nothing to do with dependants.

Q. Can I deduct the cost of my spouse’s airline ticket when he came home for leave?

A. No. This is a personal expense. If your spouse came home for business reasons it may be deductible.

Q. Are family member traveling expenses deductible (to see a family member who is deployed)?

A. No

Q. Is the mileage deductible if a soldier drives from home, to active duty, and back to home?

A. No. That is considered commuting and is a personal expense.

Q. Can you include motel with your travel expenses on F2106?

A. Mileage, lodging, meals are included on F2106

Q. Is the maintenance of uniforms tax deductible?

A. A deduction is allowed for maintenance if regulations prohibit the wearing of the uniforms while off duty or if a reservist can only wear the uniform while performing duties as a reservist.

Q. What do you mean by professional dues?

A. Any dues for professional organizations that the soldier has to pay for personally, such as enlisted organizations.

Q. Does the 6% cap on loans through the Soldiers & Sailors Civil Relief Act apply only to existing loans or loans we’ve gotten since my spouse was deployed ?

A. Qualifying debts are debts that were incurred by the service member, or the service member and their spouse, jointly, before coming on active duty. Debts entered into after going on active duty are not so protected.--------------------------------------------------------------------------------

Q. My business involves livestock, horses specifically. When my spouse was deployed I had to hire people to exercise the horses. Is this expense deductible?

A. Yes, because it is a business expense.

Q. We own a small business and my spouse bought a new computer to take to Iraq so he could keep in touch with the business. Is the computer and related internet expenses tax deductible?

A. Yes, but your spouse must track how much time is spent on the computer for business purposes and how much for personal communications.

Q. Our son lives in another state, was deployed and we need to do his taxes. Where do we start?

A. First you should get power of attorney (if you haven’t already done so). Next change his mailing address so his W2s, bank statements and other tax documents start coming to your address. And finally, file both federal and state tax returns. Check with the state where your son resides to see if he has to file a state return as a deployed soldier. If you don’t have power of attorney you can E-File, fax the return for him to sign or if necessary, you may be able to sign the return with a note attached that he has been deployed

Q. Does the Soldiers & Sailors Civil Relief Act apply always or only during war time?

A. The SSCRA applies during any active duty.

Q. Does this mean that I can cancel a contract with my husband’s cell phone that he no longer needs?

A. Yes, you can end the lease with no penalties as long as the lease originated prior to deployment and it is no longer necessary due to deployment.