National Military Appreciation Month With Free Tax Guide +
Affects Employers With Fewer Than 50 Employees
Guide Focuses on Tax Benefits for Members of the Military
— May is National Military Appreciation Month, and the
Internal Revenue Service wants members of the military and
their families to know about the many tax benefits available
Each year, the IRS publishes
3, Armed Forces Tax Guide, a free booklet packed with
valuable information and tips designed to help service members
and their families take advantage of all tax benefits allowed
This year's edition, geared to
the 2014 return, is posted on IRS.gov. Available tax
- Combat pay is partly or fully tax-free.
- Reservists whose reserve-related duties take them
more than 100 miles from home can deduct their unreimbursed
travel expenses on Form 2106 or Form 2106-EZ, even if they
don't itemize their deductions.
- Eligible unreimbursed moving expenses are deductible
on Form 3903.
- Low-and moderate-income service members often qualify
for such family-friendly tax benefits as the Earned Income Tax
Credit, and a special computation method is available for
those who receive combat pay.
- Low-and moderate-income service members who
contribute to an IRA or 401(k)-type retirement plan, such as
the federal government's Thrift Savings Plan, can often claim
the saver's credit, also known as the retirement savings
contributions credit, on Form 8880.
- Service members stationed abroad have extra time,
until June 15, to file a federal income tax return. Those
serving in a combat zone have even longer, typically until 180
days after they leave the combat zone.
- Service members may qualify to delay payment of income
tax due before or during their period of service. See
Publication 3 for details including how to request relief.
Service members who prepare their own return qualify to
electronically file their federal return for free using IRS
Free File. In addition, the IRS partners with the military
through the Volunteer Income Tax Assistance program to provide
free tax preparation to service members and their families at
bases in the United States and around the world.
If you found this Tax Tip helpful, please share or forward it
with any friends & family in the military.
How ObamaCare Affects Employers With Fewer Than 50 Employees
employers have fewer than 50 full-time employees or full-time
equivalent employees and are therefore not subject to the
Affordable Care Act's employer shared responsibility provision.
If an employer has fewer than 50 full-time employees,
including full-time equivalent employees, on average during
the prior year, the employer is not an ALE for the current
calendar year. Therefore, the employer is not subject to the
employer shared responsibility provisions or the employer
information reporting provisions for the current year.
Employers with 50 or fewer
employees can purchase health insurance coverage for its
employees through the Small Business Health Options Program –
better known as the SHOP Marketplace.
Calculating the number of employees is especially important
for employers that have close to 50 employees or whose
workforce fluctuates throughout the year. To determine its
workforce size for a year an employer adds its total number of
full-time employees for each month of the prior calendar year
to the total number of full-time equivalent employees for each
calendar month of the prior calendar year, and divides that
total number by 12.
Employers that have fewer than 25 full-time equivalent
employees with average annual wages of less than $50,000
may be eligible for the small business health care tax credit
if they cover at least 50 percent of their full-time
employees' premium costs and generally, after 2013, if they
purchase coverage through the SHOP.
All employers, regardless of size, that provide self-insured
health coverage must file an annual information return
reporting certain information for individuals they cover. The
first returns are due to be filed in 2016 for coverage
provided during 2015.
For more information, visit our Determining if an Employer is
an Applicable Large Employer page on IRS.gov/aca.
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