Military Service Overseas and Tax
Military service members stationed overseas often have to deal with complex tax issues. Fortunately, there are many tax breaks available to them that can help reduce their tax liability. If you no longer reside in the United States, this is the guide for you.
Before we say anything, we appreciate that tax is a difficult topic, and the complexity seems to strengthen once you choose to move overseas. If you’re like most people, you just want to get it over with so that you can move on with your life. However, you also don’t want to pay more than necessary and lose money.
Firstly, it’s important to note that you may be eligible for the foreign earned income exclusion. This exclusion allows you to exclude an amount (normally around $100,000) of your foreign earned income from your taxable income.
Additionally, you can also claim a credit for taxes paid to a foreign country on your US tax return. In many cases, this credit can offset any US tax liability you may have. So, if you’re paying tax abroad, you may not owe any (or as much) tax to the IRS.
Of course, there are other factors to consider as well. For example, if you’re claiming the foreign earned income exclusion, you may not be able to claim certain deductions and credits on your US tax return. For more information about the intricacies of tax while living abroad, be sure to speak with a tax professional because they can provide tailored advice.
South Dakota Tax Benefits
Often, people know everything we’ve discussed so far, but they aren’t aware of something simpler. If you are registered in South Dakota, you likely don’t owe any state income tax. Why? Because the state of South Dakota doesn’t have a state income tax. Not only this, but South Dakota also has favorable laws when it comes to vehicle registration, pension tax, and more,
With this in mind, it’s worth considering companies like https://www.dakotapost.net that allow you to receive your mail in South Dakota, even if you don’t live there. By registering to receive your mail at a South Dakota address, you take advantage of the state’s lack of income tax.
How does it work? The company receives your mail at their South Dakota address, and then they forward it to you. It’s simple, legal, and it can save you a lot of money in taxes.
If you’re in the military and stationed overseas, this has two benefits because you can receive your mail regardless of where you are in the world and you can also utilize the tax advantages. In terms of the mail side of things, some companies even scan your mail and send you digital copies so you can stay on top of things even when you’re deployed. Depending on the type of mail, you can either have it sent on to your current position or have it shredded.
Whether you’re living in another country or serving in the military, consider taking advantage of all the advice in this guide. It’s designed to help you minimize your tax liability and keep more of your hard-earned money. If you’re in the military, there are a few unique tax benefits you can take advantage of, and it’s worth speaking to a tax professional to see if you qualify. After all, it can’t hurt to ask if it means keeping more of your hard-earned money!
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