Indiana's Support For Afghanistan Veterans: Uncovering Financial Benefits And Resources

Indiana does not give money to military personnel serving in Afghanistan. However, the state does offer tax benefits to military service members. For example, military service members serving in a combat zone have an automatic extension of time to file of 180 days after they leave the combat zone. Additionally, Indiana considers anyone who was an Indiana resident at the time they enlisted in the military service to be a full-year Indiana resident for state income tax purposes during their enlistment, regardless of where they are stationed.

Indiana military personnel have special county tax filing considerations

If you are married and filing a joint Indiana income tax return, and were a resident of a given county at the time you enlisted, that county will be your county of residence while you are stationed in Indiana, and you will be taxed at the resident rate. If you and your family have been stationed outside Indiana for several years, your county of residence as of January 1 will be considered "out-of-state", and you will not owe any county tax. If you are stationed outside Indiana but your spouse maintains a household in the state, your county of residence as of January 1 will be the same as your spouse's, and you will be taxed on your income in that county.

Military servicemembers serving in a combat zone have an automatic extension of time to file of 180 days after they leave the combat zone

Military members serving in a combat zone have an automatic extension of time to file their tax returns. This extension is typically 180 days after they leave the combat zone, plus any additional days remaining before the original filing deadline when they entered the combat zone. For example, if a military member enters a combat zone on April 10th, with a tax filing deadline of April 15th, they will have 185 days to file their tax return after leaving the combat zone (180 days plus the 5 days remaining before the original deadline). This extension applies to both federal and state tax returns, although specific regulations may vary by state.

In addition to the 180-day extension, military members serving in a combat zone are also entitled to other tax benefits. Any income earned while serving in a combat zone is considered combat pay and is not taxable. This combat pay can be included in calculations for certain credits and deductions, such as the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit, potentially resulting in a larger tax refund. Military members may also be able to defer instalment payments on IRS debt during their deployment, without incurring penalties or interest.

It is important to note that the definition of a combat zone includes not only actual combat areas but also direct combat support areas, qualified hazardous duty areas, and contingency operations areas. To qualify for these tax benefits, military members must meet certain criteria as outlined by the IRS. Overall, the automatic extension of time to file tax returns and the additional tax benefits aim to ease the financial burden on military members serving in combat zones.

If the servicemember is hospitalized outside the US as a result of serving in a combat zone, the 180-day extension period begins after being released from the hospital

Military personnel serving in a combat zone are entitled to an automatic extension of 180 days after they leave the combat zone. This extension period is applicable for filing state and federal income taxes, and it includes the number of days left in the filing period when the service member first entered the combat zone.

In the case of hospitalization outside the United States as a direct result of injuries sustained while serving in a combat zone, the 180-day extension period begins after the service member is discharged from the hospital. This provision ensures that the tax filing deadline is extended for the period of hospitalization outside the country.

It is important to notify the IRS of your deployment to a combat zone. This can be done by emailing the deployed member's name, stateside address, date of birth, and date of deployment to [email protected] or by calling the IRS helpline. If the IRS sends any notices regarding collection or examination, these can be returned with "Combat Zone" and the deployment date written in red at the top of the notice, and on the envelope, to prompt suspension of the action.

Additionally, when filing the tax return, it is necessary to write "Combat Zone" across the top of the form, above the Social Security number. This extension provision also applies to the spouses of military service members serving in combat zones. The spouse must file the Indiana return using the same filing status as was used for their federal return. If the service member is married and filing jointly for federal tax purposes, they must file a joint Indiana return. On the other hand, if they are married and filing separately for federal tax purposes, they must file a separate Indiana return.

The spouse of a military servicemember serving in a combat zone must file the Indiana return using the same filing status as was used when they filed their federal return

If you are the spouse of a military servicemember serving in a combat zone, you must file the Indiana return using the same filing status as on your federal return. This means that if you are married and filing jointly for federal tax purposes, you must file a joint Indiana return. If you are married and filing separately for federal tax purposes, you must file a separate Indiana return.

When filing the return, write "Combat Zone" across the top of the form (above your Social Security number). It is important to note that valid extensions are only for filing purposes, and interest will be due on any tax that remains unpaid during the extension period.

If you were an Indiana resident at the time you enlisted in the military, Indiana will be your home of record. You are considered a full-year Indiana resident for state income tax purposes during your enlistment, regardless of where you are stationed, and all of your income will be taxed by Indiana.

If you are single, you must file Form IT-40. If you are married, the filing process depends on whether you filed a separate federal income tax return or a joint federal income tax return, and whether your spouse is a full-year Indiana resident or non-resident.

If Indiana is your military home of record, you have special filing considerations

If Indiana is your home of record, you are considered a full-year Indiana resident for state income tax purposes during your enlistment, regardless of where you are stationed, and all of your income will be taxed by Indiana. If you are single, you must file Form IT-40. If you are married, the type of form you file depends on whether you filed separate or joint federal income tax returns, and whether your spouse is a full-year Indiana resident, a part-year Indiana resident, or a non-resident.

If you filed a separate federal income tax return, you must file a separate Indiana return on Form IT-40. If you filed a joint federal income tax return and your spouse is also a full-year Indiana resident, you must file Form IT-40. If you filed a joint federal income tax return and your spouse is a part-year or full-year Indiana non-resident, you must file Form IT-40PNR. This form will help you separate the income to be taxed by Indiana. If your spouse maintains their Indiana residency during your enlistment, all of their income will be taxed by Indiana, regardless of where you are stationed.

Frequently asked questions