Tax tips for taxing times

  • Published
  • By 1st Lt. Marnee A.C. Losurdo
  • 512th Airlift Wing Public Affairs
DOVER AIR FORCE BASE, Del. --  Tax season is here, and the military offers tools to assist reservists to make filing a little less taxing.

In addition to Military One Source is offering free tax software to servicemembers and their families, the 512th Airlift Wing has two trained unit tax representatives.

Master Sgt. Michelle Anderson, 512th Equipment Maintenance Squadron, and Tech. Sgt. James Fretts, 512th AW, underwent a four-day course, instructed by the IRS, to provide expert assistance to unit members who need help with their taxes.

Another option is to download free professional tax software at www.militaryonesource.com. The program guides users online through the required forms and documentation and asks users tax-relevant questions about issues like deployment and relocation, said Laura Coseglia, 512th Family Support Center.

Servicemembers will be able to complete a federal and state tax return, using an interview process to walk them through the return process, electronically file a tax return, print and file a tax return, and check e-file status, according to Military One Source. Users are also able to transfer information from other tax software programs.

For those not fortunate enough to get a refund, taxes can be paid by personal check, credit card or electronic funds withdrawal, according to Military One Source.

The IRS also provides Free File for federal tax filing on its Web site at www.irs.gov. Free File is available to taxpayers, including military personnel and dependents, who have an adjusted gross income for 2006 of $52,000 or less.

Delaware also offers electronic filing at https://dorweb.revenue.state.de.us/filePIT/.

When filing, the following tax documents will be needed:
· Social Security numbers for the reservist, their spouse and dependents
· Child care, education and adoption costs
· W-2 Forms for all employers for the reservist and their spouse. Reservists can download W-2s at https://mypay.dfas.mil.
· Investment income forms
· Alimony information
· Social Security benefits
· Miscellaneous income
· Form 1098-E for student loan interest
· Form 1098 for home mortgage interest
· Charitable donations
· Medical and dental expenses
· Real estate taxes

For reservists who still have tax questions, Military One Source tax consultants are available 24/7 by phone at (800) 730-3802.

Quick tips for using tax refunds
MilitaryOneSource.com offers the following tips for using this year's tax refund:
- Pay debts. Put refunds towards credit card balances.
- Start an emergency savings account. Financial experts recommend keeping a savings account with 3-to-6 months pay to cover emergencies.
- Save for a down payment on a home or vehicle. A larger down payment will lower monthly payments and interest costs.
- Save for college. Contribute to a college 529 savings plan for future college expenses.
- Make an extra car or house payment. Ensure there are no prepayment penalties and tell lenders to apply the extra funds to the principal balance, not the interest.
- Reconsider W-4 withholdings. Instead of giving the government an interest-free loan, individuals should make sure those funds go into their paycheck every month.