Armed Forces News

Service members and their families should expect to pay less in 2018 income taxes, due to several changes implemented by Congress.
* One measure implemented a three-percent overall reduction in federal taxes for most military families, along with a child tax credit.
* Service members who served in the Sinai Peninsula since June 9, 2015, now qualify for combat zone tax exclusion.
* Military spouses now can use their service member’s state of residence when filing state and local tax returns, rather than the state in which they are living.
* Most veterans who were injured in combat no longer will have taxes withheld from their disability severance pay. The change should effect roughly 133,000 such veterans, who have until July to file for refunds of money that had been withheld.