Miscellaneous
The most frequently asked tax questions related to Miscellaneous
Do the deadline extensions apply only to members of the U.S. Armed Forces serving in the combat zone?
Asked Tuesday, December 27, 2011 by an anonymous userCPA Answer:
No. Members of the U.S. Armed Forces who perform military service in an area outside a combat zone qualify for the suspension of time provisions if their service is in direct support of military operations in the combat zone, and they receive special pay for duty subject to hostile fire or imminent danger as certified by the Department of Defense. The Military Family Tax Relief Act of 2003 further applied the deadline extension provisions to those serving in a Contingency Operation, as designated by the Secretary of Defense.
I am a private businessman working in a combat zone on nonmilitary projects. Do the deadline extension provisions apply to me?
Asked Tuesday, December 27, 2011 by an anonymous userCPA Answer:
No. Other than military personnel, the only individuals working in a combat zone that are entitled to the deadline extension provisions are those serving in support of the U.S. Armed Forces.
How will my military pay for active service in the U.S. Armed Forces in a combat zone appear on my Form W-2, ?
Asked Tuesday, December 27, 2011 by an anonymous userCPA Answer:
Military pay attributable to your active service in the combat zone that is excluded from gross income will not appear on your Form W-2 in the box marked "Wages, tips, other compensation.
" However, military pay for such service is subject to Social Security and Medicare taxes and will appear on your Form W-2 in the boxes marked "Social security wages" and "Medicare wages and tips."
If you believe you are entitled to the military pay exclusion, but it is not reflected on your W-2, ask your service branch to issue a corrected Form W-2.
" However, military pay for such service is subject to Social Security and Medicare taxes and will appear on your Form W-2 in the boxes marked "Social security wages" and "Medicare wages and tips."
If you believe you are entitled to the military pay exclusion, but it is not reflected on your W-2, ask your service branch to issue a corrected Form W-2.
What is military differential pay?
Asked Tuesday, December 27, 2011 by an anonymous userCPA Answer:
Some employers voluntarily agree to continue paying full wages to their employees who are called to active duty. This is commonly referred to as differential pay. Differential pay is any payment made by an employer to an individual for a period during which the individual is performing service in the uniformed services while on active duty for a period of more than 30 days and represents all or a portion of the wages the individual would have received from the employer if the individual were performing services for the employer.
What is the tax ramifications of military differential pay?
Asked Tuesday, December 27, 2011 by an anonymous userCPA Answer:
Military differential pay is wages and should be reported in box 1 of Form W-2 as wages for income tax purposes. Military differential pay is includible as wages for income tax purposes on Form W-2, but is excludable from social security and Medicare taxes (FICA).
How does a person who receives military differential pay report this on the federal 1040 income tax return?
Asked Tuesday, December 27, 2011 by an anonymous userCPA Answer:
These amounts are included in wages on Line 7 of Form 1040.
What is a Veteran's Administration mortgage?
Asked Thursday, December 22, 2011 by an anonymous userCPA Answer:
A mortgage loan backed by the Veteran's Administration requires very low or no down payments and has less requirements for qualification. Generally, the interest rates are lower than what is being offered in the marketplace. Members of the U.S. Armed Forces are eligible for the loans under certain qualifying conditions. Contact the local Veteran's Administration office for more information.
Are my payments for Marine accrued leave taxable?
Asked Wednesday, November 22, 2000 by an anonymous userCPA Answer:
Yes. Your payments for your Armed Forces Marine accrued leave are taxable and reportable as wages on IRS Form 1040 page 1.
Are my Marine reserve training wages taxable?
Asked Wednesday, November 22, 2000 by an anonymous userCPA Answer:
Yes. Your Marine reserve training compensation are taxable and reportable on IRS Form 1040 page 1 as wages.