Wednesday, March 26, 2003
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Wednesday, March 26, 2003 |
House passes tax reforms for military personnelToday the House of Representatives passed the Armed Forces Tax Fairness Act (H.R. 878) which makes several changes to the tax code benefiting the men and women in the U.S. military who are currently deployed. "While our troops are poised on the brink of war against Saddam Hussein, the last thing they need to worry about is taxes," said U.S. Rep. Mac Collins. "I was pleased to support this bill to help simplify the lives of those who do so much to protect our nation." In addition to the passage of this bill, the Internal Revenue Service announced today extensions of filing deadlines for those military personnel and civilian contractors deployed overseas. Under these extensions, those personnel who are deployed in the service of their country will have 180 days from the date of their return to the country in which to file their income tax return without penalty or interest. "I commend the IRS for the foresight to implement these regulation changes," said Collins. "Our troops need to have their mind focused on the task at hand. Their families do not need to be further burdened while their loved ones are fighting for our liberty." H.R. 878 simplifies filing for service members and creates equity between military personnel and non-military personnel. Its provisions include: Capital gains tax exclusion. The legislation ensures Armed Service personnel receive the same benefit everyone does from the current tax law exclusion for the sale of a principal residence. Tax-free treatment of death gratuity benefits. It provides full tax exclusion for a death benefit which may be received by an individual's survivors. Tax-free base closure assistance. Exempts from taxation assistance that members of the Armed Forces receive under the Homeowners' Assistance Program when military bases are closed. Extends combat zone filing. Current law provides certain tax deadline extensions for military personnel while serving in a combat zone. These extensions ensure that service personnel are not penalized if they are serving overseas when April 15, Tax Day, rolls around. This provision of the bill expands the definition of combat zones so those serving in "contingency operations," such as those in the Middle East, enjoy the same extension. Above-the-line deduction for overnight travel expenses of military reservists. The bill provides an above-the-line deduction of up to $500 of non-reimbursable travel expenses incurred by military reservists who serve more than 100 miles away from home and stay overnight. The bill will now be sent to the Senate for consideration.
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