Get Ready For The '09 Tax Season
By H&R Block Tax Institute
Winter 2008-09
If you are serving in the military, here are some important points to keep in mind for the 2009 tax season.
Filing due date. Generally, your income tax return is due by April 15, 2009. If you are not able to complete your return by that date, you may request an automatic six-month extension by filing Form 4868, Application of Automatic Extension to File U.S. Tax Return.
However, if you are in military service outside of the U.S. and Puerto Rico on a tour of duty that includes April 15, 2009, you have an automatic two-month extension (to June 15, 2009) to complete your return. You do not need to request this extension, but you should attach a statement to your return explaining your qualification to take it. Still need more time? You may file Form 4868 to request an additional four-month extension (to Oct. 15, 2009).
If you are serving in a combat zone, you have a special extension to file your return, request a refund, pay any tax due or meet other IRS obligations. These requirements are postponed during:
- the period of time you serve in a combat zone, plus
- the period of time (up to five years) of your continuous hospitalization outside of the
The 180-day postponement period runs consecutively with the regular tax filing period (generally three-and-a-half months). In other words, if you have the special extension due to serving in a combat zone, you can still take advantage of the regular tax filing period.
Example: Your tour of duty in
Note: The special extension for combat zone duty also applies to service in a qualified hazardous duty area or deployment in a contingency operation.
Power of attorney. You are required to sign your own tax return. However, if you are going to be out of the country, you may grant power of attorney to someone to sign and file your return by filing Form 2848, Power of Attorney and Declaration of Representative. If you are filing a joint return, your spouse may either: (1) send you the return to sign, or (2) sign the return on your behalf. However, in the second case, your spouse must have power of attorney.
Exception: If you are serving in a combat zone or you are incapacitated, your spouse may sign the return on your behalf without power of attorney. However, your spouse should attach a statement to the return explaining why he or she is signing on your behalf.
Recovery rebate credit. You may be eligible for a tax credit of up to $600 ($1,200 if you are filing a joint return) plus $300 for each qualifying child under 17. In many cases, you are eligible for this credit even if you are not usually required to file a tax return, your only income is non-taxable combat pay, or you and/or your spouse do not have Social Security numbers (as long as one of you is in active duty military status).
If you did not receive an economic stimulus rebate in 2008, or you are eligible for a higher rebate than the one you received, you may claim a recovery rebate credit on your 2008 tax return. However, if you already received the maximum rebate in 2008, there is no additional recovery rebate credit available on your 2008 tax return. If you received a higher rebate in 2008 than you are eligible for, you do not have to repay any of it.
Earned income tax credit (EITC). If you have children who are under the age of 19 (or who are 19-23 and full-time students) and your earned income is less than $38,646 ($41,646 if you’re married and file a joint return), you may be eligible for an earned income tax credit worth up to $4,824 in 2008. A smaller credit is available even if you don’t have children, but the earnings cutoff is lower: $12,880 ($15,880 for joint returns). The credit is refundable, which means you receive the credit (a check from the government) even if it is more than your tax bill for the year.
Two special rules may apply to you: (1) U.S. military personnel stationed outside the United States on extended active duty are considered to be living in the U.S. for purposes of the EITC; (2) You may elect to treat non-taxable combat zone pay as earned income for the EITC under a special tax provision made permanent by the recently enacted military bill.
For further details, check the Armed Forces’ Tax Guide (Publication 3) at www.irs.gov/pub/irs-pdf/p3.pdf.
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H&R Block’s 12,800 retail tax offices nationwide can assist servicemembers with any tax or financial concerns. Call 1-800-HRBLOCK or visit www.hrblock.com to find the nearest H&R Block location. Military families can learn more about making wise financial choices and find information about H&R Block’s Military Spouse Scholarship Program at www.hrblock.com/military.