How Veterans & Military Members Can Claim Up to $7830 from the IRS: If you’re a veteran or an active-duty service member, you may be eligible for a significant tax benefit—up to $7,830—through the Earned Income Tax Credit (EITC). This credit is designed to support low-to-moderate-income workers, and many military personnel qualify due to unique tax provisions available to them.
To maximize this benefit, it’s essential to understand the eligibility criteria, how to claim it, and the specific military tax advantages that could increase your refund. Let’s break it down step by step.
IRS EITC Benefit for Veterans & Military Personnel
| Feature | Details |
|---|---|
| Maximum Credit | Up to $7,830 for the 2024 tax year |
| Eligibility | Based on income, filing status, number of dependents |
| Military-Specific Benefits | Nontaxable combat pay, PCS moving expenses, unique tax deductions |
| Income Limits (Single Filers) | $18,591 (no children) – $59,899 (three or more children) |
| Income Limits (Married Filers) | $25,511 (no children) – $66,819 (three or more children) |
| Investment Income Cap | Must be $11,600 or less |
| Where to Apply | IRS EITC Assistant |
| Free Tax Help | MilTax, VITA Program |
What is the Earned Income Tax Credit (EITC)?
The EITC is a refundable tax credit aimed at helping low- and middle-income workers. Unlike standard deductions that lower taxable income, the EITC can actually result in a refund—even if you don’t owe any taxes.
For 2024, the maximum credit is $7,830, but the exact amount varies based on income, filing status, and number of dependents.
Who Qualifies for the EITC?
To be eligible, you must meet the following conditions:
Earned Income – Must have income from wages, self-employment, or other taxable work.
Income Limits – Your adjusted gross income (AGI) must be within IRS limits.
Valid Social Security Number (SSN) – You, your spouse (if filing jointly), and qualifying children must have valid SSNs.
Filing Status – You cannot file as Married Filing Separately.
Residency Requirement – You must be a U.S. citizen or resident alien for the full tax year.
Investment Income Cap – Your investment income must be $11,600 or less.
Special EITC Benefits for Military & Veterans
Service members and veterans can take advantage of special tax benefits that may increase their refund:
1. Nontaxable Combat Pay
Military personnel serving in a combat zone may receive nontaxable combat pay. The IRS allows you to choose whether to include this income in your EITC calculation. If adding it increases your credit, you should report it; if not, leave it out.
Example:
- A soldier earns $30,000 in taxable income plus $10,000 in combat pay.
- The $10,000 combat pay is tax-free, but they can choose to count it for EITC.
- If including it boosts their refund, they should report it; if not, they should exclude it.
2. PCS Moving Expenses
Military members required to relocate due to a Permanent Change of Station (PCS) may be eligible to deduct certain moving expenses. Reducing your adjusted gross income (AGI) with these deductions can help you qualify for a higher EITC amount.
3. Military Tax Exemptions & Credits
- Service members may also qualify for:
- Tax-free housing allowances (BAH & BAS)
- Exemptions for overseas income
- Free tax prep assistance (MilTax, VITA)
- Additional credits for dependents
- Lower tax liability on severance pay
How to Claim Your EITC in 4 Simple Steps
Step 1: Check Your Eligibility
Use the IRS EITC Assistant tool to see if you qualify based on income, filing status, and dependents.
Step 2: Decide on Combat Pay Inclusion
If you received combat pay, calculate whether including it in your earned income will result in a higher EITC refund.
Step 3: Gather Required Documents
- Make sure you have:
- W-2 forms
- Tax statements
- Military-specific tax records (BAH, BAS, PCS orders)
Step 4: File Your Taxes
Even if you don’t owe taxes, you must file a return to claim the EITC. Utilize free tax prep services like MilTax (for military members) or the VITA Program to ensure you maximize your refund.
Final Thoughts
If you’re a veteran or an active-duty military member, the EITC could put thousands of dollars back in your pocket. Many service members miss out on this benefit simply because they don’t realize they qualify.