ABA ALERTING MILITARY FAMILIES TO POTENTIAL TAX SAVINGS
New Project Highlights Recent Changes to the Tax Law
WASHINGTON, DC—Thousands of military personnel
and their families may be able to lower their tax bill this year,
thanks in part to recent changes in the tax law. But some of them
could miss out on the savings, if they don't act quickly.
To ensure that service members and their families are aware of the
new tax benefits available to them, the American
Bar Association Section of Taxation and the ABA
Standing Committee on Legal Assistance for Military Personnel
have teamed up to produce an informational
brochure on the Military Family Tax Relief Act of 2003.
While the act, signed into law last November, primarily provides
additional tax benefits for active duty and retired military families
for 2003 and beyond, some of its provisions are retroactive. To
take advantage of this, families will have to amend their tax returns
from previous years by November 11, 2004, in order to see a savings.
"Since portions of the act apply as far back as 1997, there
are refunds that are going to be required under the new law,"
said Richard Shaw, chair of the ABA Tax Section. "We want to
be sure service men and women see their military legal assistance
officer, tax lawyer or accountant as soon as possible to ensure
they get the refunds they are entitled to."
Shaw says the act restores fairness to the tax system by easing
some of the burden placed on military families whose service prevents
them from meeting the standards for tax breaks that ordinary taxpayers
can meet. Some of the new benefits provided to members of the armed
services under the new law include:
- Above-the-line adjustments to income for members of the
National Guard or Reserves who must travel more than 100 miles for
drills or practice;
- Greater flexibility for military homeowners who need to
sell their home in a shorter period of time and face having to pay
capital gains tax;
- Tax-free dependent day care assistance for military families
who use base child care facilities; and
- Tax-free death benefits paid to survivors who lose a loved
one in combat.
Retired Navy Rear Adm. John Jenkins, chair of Standing Committee
on Legal Assistance for Military Personnel, says the brochure is
just one of the many efforts by the ABA to assist military personnel
and their families at this critical time. "The ABA places great
value on its long-standing relationship with the military, and the
LAMP Committee seeks as many opportunities as it can to collaborate
with other ABA entities to help provide outreach, education and
legal assistance to service members and their families," he
said.
Copies of the brochure are available online on the Tax Section's
public information Web site at www.taxtips4u.org
and on the LAMP web site at www.abalegalservices.org/lamp.
The ABA LAMP Committee provides
assistance to military lawyers (judge advocates) and civilian lawyers
charged with providing civil legal services to an estimated nine
million military personnel and their dependents. The committee also
serves as a clearinghouse for the armed forces on issues and developments
in the law relating to the delivery of legal assistance. LAMP also
acts as a liaison between the ABA and the Department of Defense,
and its military services.
The American Bar Association Section of Taxation
has more than 20,000 tax lawyer members nationwide. Its goals include
helping taxpayers better understand their rights and obligations
under the tax laws and working to make the tax system fairer, simpler
and easier to administer.
The American Bar Association is the largest voluntary
professional membership organization in the world. With more than
400,000 members, the ABA provides law school accreditation, continuing
legal education, information about the law, programs to assist lawyers
and judges in their work, and initiatives to improve the legal system
for the public.
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