Servicemembers, DOD civilians could pay less in taxes this year following overhaul to tax code

by Caitlin M. Kenney
Stars and Stripes

WASHINGTON — The biggest changes to the tax code in more than a generation could mean substantial tax reductions for servicemembers and civilian federal employees when they file their taxes this year, according to the executive director of the Armed Forces Tax Council.

Tax filing season began Monday for taxpayers and last year “marked one of the biggest changes in the tax code…since 1986,” said Lt. Col. David Dulaney, the executive director of the council.

Changes in the tax code that affect the military community come from multiple laws that affect taxes for 2018, including the Tax Cuts and Jobs Act and the Combat-Injured Veterans Tax Fairness Act.

“The good news is that most of our servicemembers should see a substantial reduction in their overall federal taxes for 2018, even if their itemized deductions were either suspended or capped because of the changes in the tax code. And the reason why that is because of the reduced tax rates,” Dulaney said.

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