Many enlisted members of the military earn a salary less than $30,000 while raising children. In addition, many National Guard members and Reservists have been activated for duty, which can result in a significant reduction in a family’s income. When enlisted members transition out of the military, they tend to experience longer periods of unemployment than civilians and tend to earn lower wages. Military families and returning veterans may qualify for tax benefits such as the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), but not realize they are eligible.
CONNECT WITH
- Military units’ Family Assistance Centers
- Local American Red Cross
- Local Boys and Girls Clubs of America
- Job training and vocational programs
- Programs designed to support returning veterans
STRATEGIES
1. Reach out to families of military personnel.
Make sure families are aware of the EITC, the CTC, and free tax filling assistance programs in their communities. Connect with local Family Assistance Centers and organizations that provide support to families of units called up for active duty such as the American Red Cross and the Boys and Girls Clubs of America.
2. Inform military personnel and veterans about MilTax.
MilTax is a free tax filing software designed to address the needs of military families. Users can file a federal tax return and up to three state returns. Tax professionals are also available to answer any questions.
3. Incorporate tax credit outreach with programs for returning veterans.
The Transition Assistance Program (TAP) provides valuable resources for returning veterans, including assistance with finding jobs and information about benefits for veterans. TAP is well-positioned to disseminate tax credit information as well.
4. Engage job training and vocational programs.
Returning veterans are often faced with the need to go back to school so that they can secure employment. Inform job training programs about the EITC, CTC, and free tax filing assistance.
5. Work with VITA sites on military bases.
There are nearly 50 VITA sites at U.S. military installations. Contact these VITA sites and ask whether veterans recently leaving the military can use the VITA services offered at the post or base. Military families and veterans who live far from a military post may miss out on key tax information for their situation. For example, all tax preparers may not be aware of special rules that apply to military combat pay and tax credit eligibility. Use this locator tool to identify military VITA sites.