TaxBrain Online Tax Center Salutes New $1.2 Billion Tax Act as Good News for Americans on Active Duty Military Service.Business Editors/High-Tech Writers TRACY, Calif.--(BUSINESS WIRE)--Dec. 15, 2003 Sweeping Changes Advantageous for Frequently Uprooted Military and Foreign Service Personnel Petz Enterprises, Inc. (PEI), owners of the popular TaxBrain Online Tax Center(TM) (www.taxbrain.com), today explained how recent tax laws, totaling $1.2 billion, will provide sweeping changes to benefits for U.S. Armed Forces and Foreign Service Officers (FSOs). Leroy Petz Sr., President of PEI, commented, "The Military Family Tax Relief Act (MFTRA MFTRA Military Family Tax Relief Act of 2003 ) came into effect on November 24 and is designed to provide a variety of amended benefits to military personnel. Those affected include families of fallen soldiers, personnel selling residential properties, military families using childcare services, National Guard and Reservists and Service Academy Candidates. TaxBrain has a successful, long-standing relationship with our Armed Forces." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Eric Hayes, Senior Tax Analyst for TaxBrain, there are 1.4 MM households (containing active, reserve and National Guard) and 360,000 annual military relocations - all of which can greatly benefit from the new tax laws. "Those on qualified, extended duty in the U.S. Armed Services The Constitution authorizes Congress to raise, support, and regulate armed services for the national defense. The President of the United States is commander in chief of all the branches of the services and has ultimate control over most military matters. or the Foreign Service, are now more likely to qualify for a $500,000 or $250,000 capital gains exclusion when selling their primary residence." Hayes explained, "Under the old law, to qualify for the exclusion, an individual must have lived in the property they were going to sell for two out of the five previous years. Owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de the transient A malfunction that occurs at random intervals and lasts for a short duration such as a spike or surge in a power line or a memory cell that intermittently fails. See spike and power surge. transient - 1. nature of their deployment, many servicemen and FSOs would fail to meet these criteria through no fault of their own. "The new law provides special dispensation DISPENSATION. A relaxation of law for the benefit or advantage of an individual. In the United States, no power exists, except in the legislature, to dispense with law, and then it is not so much a dispensation as a change of the law. for the 'live in' rule and individuals on active duty time now have a ten-year window in which to qualify," Hayes said. Military Family Benefits Enhanced MFTRA doubles the military death benefit to families of fallen soldiers to a tax-free sum of $12,000. This benefit relates to events occurring since September 11, 2001. The Act also ensures that childcare expenses provided to military families are not treated as a taxable benefit. New Rules Set to Assist National Guard and Service Academy Candidates The new rules will affect travel expenses as Hayes explained, "Under the new provisions, National Guard troops and Reservists traveling more than 100 miles and requiring overnight stay, can deduct de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. travel expenses - so long as the amount does not exceed the general federal per diem per diem adj. or n. Latin for "per day," it is short for payment of daily expenses and/or fees of an employee or an agent. rate. This deduction relates to all amounts that were paid or incurred in tax years starting after December 31, 2002. "Members of the Service Academy will also gain from the MFTRA," Hayes continued, "distributions from Coverdell Education Savings Accounts Coverdell Education Savings Account A special individual retirement account opened on behalf of a child under age 18. Contributions of up to $2,000 annually may be made by anyone who meets specified income limits. (ESAs) and Section 529 plans are excluded from gross income if used for qualified educational expenses. Any distribution included in gross income is typically subject to an additional 10 percent tax, but is waived if the proceeds are used on account of a scholarship received by the beneficiary beneficiary Person or entity (e.g., a charity or estate) that receives a benefit from something (e.g., a trust, life-insurance policy, or contract). A primary beneficiary receives proceeds from a trust or insurance policy before any other. . Under the MFTRA, the individual can make penalty-free withdrawals from ESAs based on their attendance at a service academy for tax years beginning after 2002." TaxBrain discounts now extend to all Armed Forces members Reinforcing TaxBrain's special relationship with the military, Mr. Petz said, "To honor the women and men of our country, who put their lives on the line for us every day, TaxBrain Online Tax Center(TM), now in its fourth year, provides discounted services to members of the U.S. Armed Forces. TaxBrain offers the perfect solution for servicemen and FSOs traveling overseas, who simply need Internet access See how to access the Internet. and their tax paperwork to file online at www.taxbrain.com." About TaxBrain TaxBrain is a full service online tax center providing tax advice, tools, and resources year round to help taxpayers manage their tax burdens with greater confidence and ease. TaxBrain is the only web-based tax solution that delivers online preparation, filing, professional assistance and representation for taxpayers in all 50 states. Launched in 2000, TaxBrain delivers the vision of a fully integrated tax center that accommodates the schedule and needs of the busy American lifestyle. In 2002, TaxBrain emerged as one of the most popular services for online tax preparation and filing available on the web. For more information, visit www.taxbrain.com. About Petz Enterprises, Inc. Petz Enterprises, Inc. (a closely held A phrase used to describe the ownership, management, and operation of a corporation by a small group of people. In a closely held corporation, the same people often act as shareholders, directors, and officers, and no outside investors exist. California corporation, PEI) is a leading provider of tax preparation and filing solutions for the professional and consumer markets helping to automate To turn a set of manual steps into an operation that goes by itself. See automation. and simplify federal, state and local tax compliance. PEI's CrossLink(TM) line of professional tax software products enables tax practitioners and service bureaus to accurately prepare and file large volumes of individual tax returns. Founded in 1974, and based in Tracy, California, PEI is dedicated to serving the needs of professional tax practitioners and individual taxpayers nationwide. For more information, visit www.petzent.com. |
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