Everyone is subject to paying taxes, but there are tax breaks for certain individuals. Military personnel have several tax write offs available that can help them save hundreds and even thousands of dollars a year. The service members' civil rights act has several benefits. The service members' civil rights act allows nonresidential servicemen and women to be excluded from paying state income taxes. The only way one can qualify for this tax write off is if you are only located in a state because of active duty. The states also cannot increase the spouse's state income tax liability by adding the service member's income in the income that is subject to tax laws.

The service members' civil rights act also offers service members the opportunity to delay paying their income taxes that are due before or during active duty. Service members are only able to delay the payment for 180 days after their duty is terminated. Another tax write off for military families is the death gratuity. If you are a survivor of a service member that died as a result of active duty, you are entitled to death gratuity benefits in the amount of $12,000.

Service members that are students can deduct most of their educational expenses. The interest amount paid on student loans is deductible. The school will send a Form 1098-E and this tax form will show how much money was paid in interest over the past year. Service members are also eligible for the Lifetime Learning credit and the Hope credit. Both tax credits will save you $1,500 or more on your tax bill.

Everyone is able to deduct money if they owed additional tax money to their state on last year's tax return. The tax rules do change often, so this will need to be checked each year before the tax credit is claimed. If you bought a new car or other large item, you can deduct the sales tax and you can deduct personal property taxes that were paid on the item.

Typically the government will pay for all moving expenses for service members. If you had to relocate for active duty and you paid additional moving expenses, they may be deductible as an adjustment to income. Any personal items, like clothing or furniture, which were donated to charity, can be deducted as non-cash charitable contributions. The items that were donated must be in good or new condition in order to qualify as a tax credit.

If you were relocated overseas, you can deduct any taxes that were paid to a foreign government. Typically investments made in foreign stocks and other things are eligible for tax deductions. Another tax deduction you may qualify for is if your spouse lived with you while you were overseas and they earned money from a job in that country.

The cost to purchase and upkeep military uniforms are also deductible. If a uniform requires epaulets and accoutrements, this amount is also tax deductible. The uniforms that qualify for tax write offs are those that can only be worn for duty. If you are able to wear the uniforms at other times, you cannot claim this tax write off. The government will cover medical expenses, but any miles driven for medical care is considered a tax write off. If you pay a taxicab, bus, subway, tolls, or parking fees in order to receive medical care, these payments can be deducted.

If military responsibility requires you to travel more than 100 miles away from your primary residency, you can deduct this amount on your taxes. The travel deduction includes any expenses incurred when traveling for military purposes. This deduction includes lodging, meals, and transportation expenses. The amount that can be claimed is based on the rates for federal employees. A Form 1040 allows you to input all your travel expenses. For any service members serving overseas, they must designate a third party on their tax return for the IRS to contact in case there is a problem with their tax return. There is a box on the tax return where you are able to designate a third party for the IRS to contact.

Military members often enjoy other tax advantages that are not available to other residents. The basic allowance for housing is not taxable and you are still able to deduct mortgage interest and real estate taxes. There is also an exclusion of tax on home sales. In the past, military members were forced to pay the capital gains tax from the sale of their property, now military members can avoid paying this tax if they are relocating for active duty. Overseas Housing Allowance benefits are also not taxable and there are moving allowances for moving trailers, mobile home, personal items, storage, temporary lodging, and move-in housing.

Disability, defense counseling, group-term life insurance and retirement protection premiums are all tax deductible. Any dependent care assistance, dental and medical care, legal assistance, and commissary discounts are all tax deductible. The Military Family Tax Relief Act of 2003 assists military homeowners that experience a loss in the value of their home due to the closure or downsizing of a military base. In the past, homeowners were compensated for the loss and then taxed on this amount; this act has eliminated the tax on this compensation.

The child care credit is one of the largest tax deductions for most tax payers. You can claim up to $6,000 a year in child care services and receive a tax credit for this amount. If the amount is reimbursed by your work, you cannot claim the child care credit. The Heroes Earning Assistance and Relief Tax Act of 2008 also benefits military families. Military families are able to receive their $600 economic stimulus check even if they do not have a Social Security number. The new Tax Relief Act allows Guard and Army Reserve Soldier's that have been activated to take money out of their retirement accounts without incurring a tax penalty. In the past the Social Security Administration could disqualify military families from receiving benefits because of their combat pay, now the Social Security Administration is unable to disqualify families based on their combat pay.

Another benefit of the Heroes Earning Assistance and Relief Tax Act of 2008 is the money military families will have access to so they can afford housing, bills, or military spouse education. Military spouses are able to received scholarships and continue their education. Depending upon your modified adjusted gross income, you may qualify for the non-refundable Retirement Savings Contribution Credit. This credit is designed to help offset the costs of contributing to a retirement plan. Your filing status and your modified adjusted gross income will determine if you are eligible to receive a tax credit of up to 50 percent of your first $2,000 in contributions.

If you inherited an IRA through an estate, you can qualify for an income tax deduction for the amount of estate taxes that were paid on the IRA balance. For example, if you withdraw $50,000 from the IRA, you can claim $22,500 as an itemized deduction on Schedule A. Another deduction you may qualify for is if you owed money on the previous year's tax return. The amount you paid to the state needs to be included on your deduction for the current year. If you served jury duty and you were paid during this time, you must report those fees as taxable income.

Often military personnel have a hard time figuring out how to file their taxes. Military personnel that are stationed away from their point of residence are usually unsure of which state they are going to file their tax forms with. The general rule is to file state taxes in the state where your primary residence is, even if you do not current reside there. If you are the spouse of an active military member, you will need a durable power of attorney to file a tax return on their behalf. If your spouse has been called up for duty and has yet to deploy, contact their JAG officer for help in preparing the proper form. If you are unable to prepare the proper forms on time, check to see if you are eligible to file for a deadline extension. The IRS will allow military families to receive a deadline extension if their spouse is serving in a combat zone or other hazardous duty area.

Military personnel or their family members should contact a tax accountant for more information on the current tax laws and tax write offs that are available. The IRS web site also has helpful information for military families and the tax credits they may be eligible for. In order to fully benefit from the current tax bills, it is important to have a professional review them and verify all the information and make sure everything is correct. There are a number of different forms that must be filled out by military personnel and it is easy to miss stipulations. Any exclusion on your tax forms will also be caught by professional tax accountants. New laws are being passed that impact military personnel, so it is important to discuss your tax write offs with professionals that understand the applicable laws.