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Tax Center helps Soldiers,
Families navigate tax laws
by Tina Ray
Paraglide
The new year ushered in a bevy of tax laws with which some Soldiers and their Families may not be familiar.
It is one of the goals of the Fort Bragg Tax Center to inform military personnel, Family members and retirees of tax laws that could affect them.
For instance, the first-time homebuyer’s credit, which was initially $7,500 has been increased to $8,000 or up to 10 percent of the purchase price of a home, said Capt. Tim Davis, officer in charge of the tax center and an attorney with the XVIII Airborne Corps Staff Judge Advocate.
A tax Web site defines a first-time homebuyer as someone who has not owned a primary residence in the three years ending on the date of purchasing the home. Married couples are considered first-time buyers if neither spouse has owned a home in the previous three years.
Davis said that although the deadline for the first-time homebuyer’s tax credit was set to expire in November 2009, it has been extended to April 30. Furthermore, servicemembers have an extra year to buy a home in the U.S. and qualify for the credit. The home must be purchased or under contract on or before April 30, 2011, he said.
Repayment of the tax credit may be waived if a Soldier or his or her spouse is ordered to a permanent change of station.
Other tax changes that may affect Soldiers include a long-term homebuyer’s credit of up to $6,500, designed for people who have lived in their existing homes for five of the last eight years, but who wish to take advantage of the first-time homebuyer’s credit.
“It is designed so that people who had been in a house for awhile could get a credit for buying something new,” Davis said. “It encourages people to buy property.”
The American Opportunity Credit is an education credit that now covers four years of undergraduate education as opposed to the two years that it had previously covered. According to Davis, AOC allots up to $2,500 per student and now allows each student to claim education expenses such as textbooks and computers.
The Residential Energy Credit is available for people who make energy-conscious purchases to improve energy efficiency in the home. Valued at up to $1,500, it applies to such expenses as insulation materials that reduce heat loss or gain; installation of exterior windows and skylights; and roofing improvements designed to reduce heat gain.
Any state, local and/or excise taxes paid on a new car purchased in 2009 can be applied as a tax deduction, said Davis.
In addition to informing Soldiers of the tax changes that could potentially affect them, Davis said he also wants Soldiers, Family members and retirees to know that the tax center provides all its services free and is on the same refund schedule as tax preparation sites off base.
“You’re not going to get your money any quicker if you go off post,” he said.
Last year, the Fort Bragg Tax Center processed almost 14,000 tax returns netting more than $21 million in refunds.
It saved Soldiers, Family members and retirees $2.4 million in tax fees off post.
“Fort Bragg is the biggest tax center in the Army, so it’s quite a large savings for everyone,” Davis said.
The tax center will open Tuesday in it’s new location in Building 4-2145 off Normandy Street. The building is at the end of the parking lot on the Davis Dental Clinic side of the Soldier Support Center.
The W2 forms for Soldiers are not issued until Jan. 20, so opening on the 19th gives the center time to continue to train staff.
Fort Bragg Tax Center is open from 9 a.m. to 9 p.m., Monday through Friday and 9 a.m. to 5 p.m., Saturdays. The center will be closed Sundays and major federal holidays, but will open on training holidays.
It will remain open until midnight April 14 to 15.
To have tax returns prepared, Soldiers, Family members and retirees must:
Arrive at the Tax Center no later than one hour prior to closing.
Bring W2 forms, which can be downloaded from the Defense Finance and Accounting Service MyPay Web site at https://mypay.dfas.mil.
Bring their military, dependent or retiree identification card.
Bring power of attorney if filing for another person or if filing “married filing jointly” without one’s spouse present and any tax forms received in the mail.
Bring a canceled check to receive a refund by direct deposit.
Spc. Arron Massenberg of the 259th Field Service Company is one of the more than 40 Soldiers from across the installation who has recently been trained in tax preparation.
“I feel like we’ve been very well trained by the IRS,” Massenberg said. “I feel confident because the training they’ve given us is going to get us through.”
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