4 Tax Perks Military Families Often Miss

Every year, military families leave real money on the table simply because they don’t know which tax breaks apply to them. Service members earn benefits most civilians don’t get — but only if they claim them.

Here are 4 of the most commonly missed tax breaks for service members and their families.

1. Travel expense for reservists

If you are in the National Guard or military reserve, you may be able to deduct your unreimbursed travel expenses. If you travel more than 100 miles from home and are away overnight, you can deduct your lodging, half of the cost of meals (up to per diem rate), mileage, tolls, and parking fees. For 2026, the mileage rate is 72.5 cents per mile through June 30 and 76 per mile from July 1 onward. 

2. ROTC payments

If you are a student in the ROTC, you don’t have to pay tax on the allowance that you receive for your participation in advanced training.  This rule doesn’t apply to any active duty pay that you receive.

3. Combat pay

The pay you receive for any month that you serve in a combat zone isn’t taxable. If you are a military officer, your tax-free pay may be subject to a cap. But even though your combat pay isn’t taxable, don’t overlook it. You can take that pay into account to qualify for the Earned Income Tax Credit.

4. Moving expenses

If you are on active duty and have moving expenses in connection with a permanent change of station, those moving expenses are deductible, if they are not reimbursed to you. TurboTax Military Edition will walk you through your tax return.  If you have additional questions, you can ask TurboTax tax experts who are CPAs, IRS Enrolled Agents, and tax attorneys.

Filing your tax return

If you are serving in a combat zone during tax filing season, you have at least 180 days beyond the traditional April 15 deadline to file your tax return. If you are hospitalized because of injuries you sustained in a combat zone, similar extensions of time to file apply.

If you are serving overseas in a non-combat zone, the April 15 deadline is automatically extended to June 15. If you are a civilian serving in a combat zone, the same rules apply, but you need to write the words “Combat Zone” and your deployment date in red across the top of your tax return. Military members do not have to make this notation on their tax return. And if you are serving in the military and so are not available to sign a joint return, your spouse can sign it under a power of attorney.