Tax relief for military personnel in combat zones. (FTB News).The FTB FTB Franchise Tax Board (California; they collect income and sales tax) FTB Family Tax Benefit (Australian welfare assistance) FTB First Time Buyer (housing) offers personal income tax relief to military members and reservists. California tax law generally conforms to federal tax benefits for combat zones and qualified hazardous duty areas, including: * Exclusion of combat zone pay from taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. ; * Extensions of the filing due date for personal income tax returns until at least 180 days after leaving the combat zone or qualified hazardous duty area without incurring penalties or interest; and * Suspension of delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. tax collection of military personnel serving in the combat area for 180 days after leaving the combat zone or qualified hazardous duty area. For enlisted en·list·ed adj. Of, relating to, or being a member of a military rank below a commissioned officer or warrant officer. enlisted Adjective members and warrant officers, all compensation for active service earned in a combat zone is tax-free. Special pay, such as re-enlistment bonuses, is also tax-free if the service member re-enlists in a combat zone. For commissioned officers, the monthly tax exclusion is capped at the highest enlisted pay, plus any hostile or imminent danger pay received. For 2003, this amount is $5,882.70 per month. Military taxpayers filing on extension should alert the FTB when they do file by writing in red ink red ink Health administration A popular term for financial losses. Cf in the Black. on top of their tax return or payment: "Combat Zone: Operation Iraqi Freedom" (or the name of the specific combat zone served in). Taxpayers also must include the dates they entered and left the combat zone or qualified hazardous duty area. For more information, refer to FTB Publication 1021, California Tax Information for Military Personnel; FTB Publicaticn 1032, Tax Information for Military Personnel; and IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. Publication 3, Armed Forces' Tax Guide, or visit www.ftb.ca.gov. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion