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Current military members and veterans receive certain tax breaks from the IRS because of their service to the country. It’s important to be aware of these, so that you get the most value from your finances both during and after service.
Combat Zone Exclusions are important tax incentives. The IRS states that active duty military personnel who are stationed in a combat zone are allowed to exclude certain types of pay from their gross income. For a complete list of types of pay that are available for exclusion, visit the IRS website.
Veterans who are on disability because of an injury sustained during combat can claim a tax refund on an increase in disability payout and any grant or reward money obtained. To receive this refund, the veteran simply needs to submit Tax Form 1040X.
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