Blog Layout

Tax Breaks For The Troops

nicholas • May 27, 2016

As Memorial Day weekend approaches, it is time to pay our respects to those that lost their lived serving for our country. However, it is also a good time to celebrate those that have served, or are currently serving our country.

I have massive respect for our service members. I have a few friends and a few clients that have served our country. I’m not sure I could physically or mentally do what they do/did. However, I can help them with some tax advice….

Talking Tax to Milwaukee’s Military:

For Business Owners: Milwaukee business owners have the opportunity to employ veterans and get a credit for it. Not only are you helping out a veteran, but you are also helping your business.

  • Short-term Unemployed: A credit of 40% of the first $6,000 of wages (up to $2,400) for employers who hire veterans who have been in receipt of unemployment insurance or compensation for at least 4 weeks or who have received assistance from a supplemental nutrition assistance program under the Food and Nutrition Act of 2008 for at least a three month period during the 15-month period ending on the hiring date
  • Long-term Unemployed: A credit of 40% of the first $14,000 of wages (up to $5,600) for employers who hire veterans who have been in receipt of unemployment insurance or compensation for longer than 6 months (whether or not consecutive) in the one-year period ending on the hiring date.

For Military Spouses: Military spouses are strong individuals. They are responsible for taking care of a lot different things. Moving around from different bases is very common, and the IRS recognizes this.

  • Prior to 2009 there wasn’t much relief for military spouses. They generally had to pay income taxes to the states where their spouses were stationed. Under the Military Spouses Residency Relief Act signed into law on November 11, 2009, military spouses who earn income in the state where their spouse is stationed may be able to claim either the state they are located in or their spouse’s legal residence (if they have established residence there as well) for tax purposes. This only matters if the spouse has income of their own. That could generate big savings if their spouse’s legal residence has lower tax rates — or no income tax at all.

For Veterans or Surviving Spouses:  This credit is specific to the State of Wisconsin.

Veterans and Surviving Spouses property tax credit?

The veterans and surviving spouses property tax credit is a credit equal to the amount of property taxes paid during the year on an eligible veteran’s or surviving spouse’s principal dwelling. The credit is claimed on the Wisconsin income tax return. Before claiming the credit, the veteran or surviving spouse must obtain verification of his or her eligibility for the credit from the Wisconsin Department of Veterans Affairs (WDVA). A copy of this verification must be attached to the Wisconsin income tax return for the first year that the credit is claimed.

 

These are just a few of the tax breaks that I have come across while serving some of my clients. There are also a variety of other tax deductions, credits, and breaks that are available to current or former military members. If you know of someone that may be able to take advantage of these deductions, please have them contact our office. We help Milwaukee, Waukesha, New Berlin, Brookfield, Wauwatosa with all tax preparation needs.

While you are out enjoying this weekend with friends and family, remember the reason you are able to enjoy the (hopefully) beautiful Milwaukee weather… The Troops!

 

 

Happy Memorial Day!

 

Nicholas Hammernik, EA

See More Blog Posts

The COVID Relief Bill Summarized

By nicholas • 24 Dec, 2020
The “rescue package” has arrived. The COVID Relief bill is a whopping 5,593 pages long. I know you don’t want to sit and read through that novel, so I am here to summarize, in plain English, how this bill is going to effect your taxes. Have you ever been on a roller coaster before? A… The post The COVID Relief Bill Summarized appeared first on Talking Tax to Milwaukee.

The Tax Slang Movement

By nicholas • 04 Dec, 2020
This past week, I finally dove into a project that I has been brewing in my mind for a few years. I published my first podcast episode today. Is it any good? I’m not quite sure. To be honest, I’m not too happy with how it turned out. However, I accomplished part of my goal.… The post The Tax Slang Movement appeared first on Talking Tax to Milwaukee.

2020 Year-End Tax Savings Tips

By nicholas • 13 Nov, 2020
Your goal should be to get the IRS to owe you money. Of course, the IRS is not likely to cut you a check for this money (although in the right circumstances, that will happen), but you’ll realize the cash when you pay less in taxes.   Here are seven powerful business tax-deduction strategies that… The post 2020 Year-End Tax Savings Tips appeared first on Talking Tax to Milwaukee.

COVID-19 Tax Updates

By nicholas • 31 Jul, 2020
  With the 2019 Tax Filing Season just behind us, it is difficult to think of the next filing season, however, there are many issues that need to be addressed now, rather than wait. At this most difficult time for our taxpayers, we want to assure you that our firm is here to assist you… The post COVID-19 Tax Updates appeared first on Talking Tax to Milwaukee.

Milwaukee Restart Grant Program

By nicholas • 05 Jun, 2020
The goal of the Milwaukee Restart Program (Restart) is to help local businesses that suffered as a result of the pandemic to reopen and adapt to the “new normal” Eligibility Restart grants will assist for-profit businesses located in the City of Milwaukee that have 20 or fewer full-time or full-time equivalent employees and greater than $0 but less… The post Milwaukee Restart Grant Program appeared first on Talking Tax to Milwaukee.

Additional Grant Becomes Available For Wisconsin Small Businesses

By nicholas • 05 Jun, 2020
Over the past few months COVID-19 has changed the way a lot of small businesses operate. Some have been unable to be open, some have adapted and changed, and some have even thrived. The Government had made a few loans available to try and help small businesses keep their employees employed and to also cover… The post Additional Grant Becomes Available For Wisconsin Small Businesses appeared first on Talking Tax to Milwaukee.

Finding the Right Accountant to Successfully Guide You Through the Tax Maze

By nicholas • 14 Jun, 2019
Choosing an Accountant Who Puts Your Goals First There is an endless supply of do-it-yourself tax preparation tools and websites, and the sheer volume of options can lead you to believe the process of filing your returns is simple. However, a DIY approach only works if you are satisfied with paying more than necessary. Tax… The post Finding the Right Accountant to Successfully Guide You Through the Tax Maze appeared first on Talking Tax to Milwaukee.

Finding the right accountant to successfully guide you through the tax maze

By nicholas • 15 Feb, 2019
  Choosing an Accountant Who Puts Your Goals First There is an endless supply of do-it-yourself tax preparation tools and websites, and the sheer volume of options can lead you to believe the process of filing your returns is simple. However, a DIY approach only works if you are satisfied with paying more than necessary.… The post Finding the right accountant to successfully guide you through the tax maze appeared first on Talking Tax to Milwaukee.

Does my Rental Property Qualify for the New Section 199A Deduction Under Tax Reform?

By nicholas • 08 Feb, 2019
  How do you know if your rental property qualifies for the 20 percent tax deduction under new tax code Section 199A? Just what we need–something else to learn along with all of the other tax code changes this year. Well, maybe not. There is a piece of good news: we won’t be required to… The post Does my Rental Property Qualify for the New Section 199A Deduction Under Tax Reform? appeared first on Talking Tax to Milwaukee.

Do You Truly Know Your Business Costs? You Better!

By nicholas • 07 Dec, 2018
Your company’s profitability depends not only on sales, but also on effective cost management. Are you adequately addressing the cost side of the business equation? Analyze Your Cost Structure You probably can readily identify the products and/or services that are generating your greatest sales volume. But can you identify all the costs associated with providing… The post Do You Truly Know Your Business Costs? You Better! appeared first on Talking Tax to Milwaukee.
More Posts
Share by: