Senior service members use tax breaks

by Tom Philpott Congress has passed legislation to end a quirky reduction in tax breaks that hits lower-income military families when their service members are assigned to Iraq, Afghanistan or other combat areas. Relief from the tax break glitch was part of the Working Families Tax Relief Act of 2004 approved Sept. 23 and sent […]

Combat taxes clashing with income tax

Tom Philpott: Military Update An estimated 5,000 to 10,000 military members fighting in Iraq and Afghanistan last year received combat-zone tax exclusions that had a surprising effect: They lowered family incomes. Some families saw a net loss in tax benefits of more than $4,000 because wartime tax exclusions disqualified them for more valuable tax breaks […]