Taxes Archives • KateHorrell

From The Mailbag: A CPA Who Doesn’t Get SCRA

24 June 2020

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There seem to be few things as confusing as state of legal residency as it applies to military service members and their spouses. Even the professionals are often under-informed or confused. As we see in this email I received: Hi, I am a CPA in CA. I have a client in the Marines. His “home… | Read More…

Understanding The Military Spouses Residency Relief Act and How It Applies To State Taxes

28 January 2020

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I am republishing this article to be more clear about the 2018 updates. The Military Spouses Residency Relief Act (MSRRA) is important law, but it is very misunderstood. Passed in 2009, it is actually an amendment to the Servicemember’s Civil Relief Act (SCRA) to provide certain specific protections to some military spouses. It was… | Read More…

How To File For An Income Tax Extension, Military-Style

10 January 2020

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Get a simple, free tax extension to get more time to file your federal tax return. The deadline to file your federal income tax returns is Wednesday, 15 April 2020. Each year, more than 10 million Americans aren’t ready to submit their returns on that date, and file for an automatic extension of the tax… | Read More…

Favorable Tax Rules for Military When Excluding Capital Gain from Sale of Principal Residence

25 November 2019

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I asked my smart friend Paul Allen if he could possibly explain the capital gains exclusion in another way, especially the part about partial exclusions. I’ve always been confused by them. Even though I’ve written about this here, I was still baffled about that part. And Paul came back in a big way. I am… | Read More…

Kate Rants: It’s Not About The Refund or Owing More Taxes

8 March 2019

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Oh, my goodness. You spend 2 minutes communicating with anyone lately, whether in person, on the phone, via owl, or on the internet, and the talk turns to income taxes. Everyone has a story this year, and they want to share. It’s not surprising; the sweeping legislation commonly called The Tax Cuts and Jobs Act… | Read More…

How Income Taxes Work – Even If You’re Not A Tax Person

23 February 2019

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Income taxes can be difficult. There are literally thousands of pages of laws, and hundreds of different forms that some people have to use to file their income tax return. However, the basic system isn’t really that complicated. The Budget Billing Analogy Before I explain the income tax system, let me explain something very similar:… | Read More…

Maintaining All Your Stuff In One State: Why It Matters Now More Than Ever

20 February 2019

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Legal offices and financial counselors have been saying it for years: try to be consistent in demonstrating your state of legal residence. And there are always some military service members and family members who insist that it doesn’t matter, that no one has ever challenged them, and that the legal and financial folks are just… | Read More…

What Military Moving Expenses are Tax-Deductible?

21 January 2019

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PCS moves are expensive. Even with all the allowances, you’ll sometimes have some out-of-pocket expenses, especially if you have pets. Thankfully, unreimbursed moving expenses can be deducted from your income taxes, and they’re a most valuable type of deduction. Disclaimer: I am not a tax professional. Do not make any decisions based solely on the… | Read More…

New Law Will Make Tax Time Easier For Military Spouses

4 January 2019

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This post has most recently been updated on 4 February 2019. The president has signed the a bill that permits military spouses to use the legal residence of their service member for purposes of taxes (and voting.) S. 2248 (115th): Veterans Benefits and Transition Act of 2018 has a provision that states: “For any taxable year… | Read More…

Home of Record and State of Legal Residence: Things You Need To Know

3 March 2018

This post may contain affiliate links, from which I may earn revenue to support this free site. All opinions are my own, and I only promote products that I use and love!

The military can be confusing, with all its special terms and acronyms. One of the terms most often mis-used is home of record. The term comes up in questions about taxes and driver’s licenses and final moves. On rare occasion, when talking about final moves, it’s being used properly. The other 99.9% of the time,… | Read More…

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