Tax Breaks For The Troops
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