As we are getting closer to tax time, I thought it may be helpful to repost this.
If you are active duty and had a permanent change of station (PCS) last year you may be able to deduct ‘reasonable expenses’ related to the move. It is important to understand the tax implications and what will be considered taxable income. Please refer to IRS Publication 521 on Moving Expenses and IRS Form 3903. Further, if you are or have served in a combat zone during the 2010 tax year, your income should be exempt from taxes. As I am not an accountant, check with your tax professional, IRS and IRS Publication 3 The Armed Forces’ Tax Guide for further information.