June 14, 2023

What Tax Breaks Are Available for Veterans?

As a veteran, you could be eligible for certain tax breaks and benefits on both the federal and state level. Here’s what you need to know.

Do you get a tax break for being a veteran?

Yes, the IRS has several tax breaks for veterans available:

Tax-free pensions, disability payments, grants, and dependent-care assistance
Tax-free VA education and training benefits such as the Post-9/11 GI Bill
Earned Income Tax Credit (EITC) that benefits low- to moderate-income taxpayers, including many veterans
In some instances, extra time to file an amended return

What states give veterans tax breaks?

As a qualifying veteran, you can receive tax breaks at the state level depending on which state you live in — and sometimes which city or county you live in. For more information about the tax exemptions available, it’s best to contact your local municipal tax assessor’s office.

Some state-level tax benefits for veterans or disabled veterans include exemptions from property taxes; housing assistance; education benefits; and financial assistance such as grants, free access to state parks and campgrounds, or preference when applying to jobs.

How do VA benefits affect taxes?

You don’t have to pay taxes on the VA benefits you receive. This includes tuition, training fees, test fees for licenses and certifications, tutor costs, work-study, books, or housing. Because of this, you should not include VA education benefits as income when filing your taxes.

To get a better idea of what your taxable income might be, try out our taxable income calculator.

You can also try out our helpful tax preparation checklist to help ensure you have all the information you might need before you file.

Do you get a tax refund if you are on VA disability?

According to the IRS, disabled veterans might be able to claim a federal tax refund if you either had an increase in your percentage of disability from the U. S. Department of Veterans Affairs, or you were granted a Combat-Related Special Compensation after an award for Concurrent Retirement and Disability.

Do you have to disclose VA disability as income?

You should not include veteran disability benefits with your gross income when filing your income tax return. Disability benefits may include:

Disability compensation and pension payments for disabilities (paid to you or your family)
Grants for wheelchair-designed homes or grants for motor vehicles if you lost your sight or use of limbs
Dependent-care assistance benefits

Does being a veteran give you a break from property taxes?

Disabled veterans are exempt from property taxes in the following states: Alabama, Arkansas, Florida, Hawaii, Illinois, Iowa, Maryland, Michigan, Nebraska, New Hampshire, New Jersey, New Mexico, Oklahoma, Pennsylvania, South Carolina, Texas, and Virginia.

For a complete list of disability requirements and property tax exemptions in each state, check out this Veterans United article.

What veteran benefits are non-taxable?

According to the IRS, any payments you receive for “education, training, or subsistence under any law administered by the VA are tax-free.” You do not need to include those payments as income on your federal tax return.

Do you get extra money from Social Security for being a veteran?

Your Social Security benefits are based on your earnings, not your military pension. The Social Security Administration (ssa.gov) offers different credits based on when you served — these credits can be added to your Social Security earnings record.

Main takeaways

We have many tax preparation options for both veterans and active-duty service members. When you file with TaxAct®, we’ll guide you through the filing process and ask you detailed questions to ensure all your income is reported correctly.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

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What Is the IRS Refund Schedule?

The IRS starts processing your tax return as soon as they receive it. But how long does it take to receive your tax refund after processing begins?

What is the IRS refund schedule for tax year 2022?

The IRS generally processes e-filed returns and sends refunds to taxpayers in less than 21 days. If you’re a paper filer, it can take much longer. Once you’ve filed, you can track your refund on the IRS website.

The IRS encourages all filers to file electronically to receive their income tax refund in a timely manner this tax season. Not only is this the fastest way to receive your tax refund, but it’s safe, secure, and easy to do yourself online when using online tax preparation software like TaxAct®.

Even if you e-file, it’s possible your refund could take longer than 21 days. This usually only happens if your tax return requires further review from the IRS.

When can I expect my tax refund for tax year 2022?

If you e-file and there are no issues with your tax return you should receive your tax refund within 21 days if you use direct deposit.

If you opt to receive your tax refund as a check, you may end up waiting a little longer — it typically takes the U.S. Treasury more time to issue paper checks.

What issues could delay my tax refund?

Your tax refund could take longer than 21 days if you filed on paper, the return was incomplete, or it included errors. Fraud or identity theft or your Social Security number could also delay your tax refund.

When should I expect my tax refund in 2023 if I claimed the EITC?

If you claim the Earned Income Tax Credit (EITC) or have dependents and claim the Additional Child Tax Credit (ACTC), you likely will not receive your refund via bank account or debit card until Feb. 28, or potentially a few days earlier.

By tax law, the IRS cannot issue these refunds until mid-February due to the PATH Act. That’s why, if you claimed one of these credits, the estimated date to receive your refund was Feb. 28 (depending on when you filed of course).

Another thing that could delay your tax refund is filing Form 8379, Injured Spouse Allocation. The IRS could take up to 14 weeks to process these returns.

How can I track my tax refund?

You can easily track your tax refund status with the IRS Where’s My Refund? tool. You can find it on the IRS.gov website or through the IRS2Go app on mobile.

What day of the week does the IRS update my tax refund status?

The IRS updates refund statuses once per week on Wednesdays. Wait at least 72 hours before tracking your refund status if you e-file or at least four weeks if you file a paper return.

Once the IRS confirms receipt of your federal tax return and you wait the appropriate amount of time, you should be able to check the status of your refund.

For the next tax season, you might want to consider utilizing a reliable tax calculator to estimate your refund amount before filing.

This article is for informational purposes only and not legal or financial advice.

All TaxAct offers, products and services are subject to applicable terms and conditions.

 

The post What Is the IRS Refund Schedule? appeared first on TaxAct Blog.

– ​Tax Tips and Tax Planning Resources | TaxAct Blog

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