2006 Federal Income Tax, Military and Student?

Question

I am in the military on active duty, but I was also a full-time student for all of 2006. When filing my taxes online, I can still check the box stating I was a full-time student (even though I also held a full-time job), right?

Answer 1

First, don't call H & R Block. Instead, buy their TaxCut software. The software instructions will be far more reliable than anything that H & R Block tells you on the phone. My question to you is: how will you document that you were a "full-time" student. If you have that item in hand, then of course fill as a full-time student. Your income is what was reported by your employer, period. So, just fill out the tax software as a full-time student.

I haven't started using this year's TaxCut yet b/c we haven't received any W-2, etc. But feel free to contact me later. Blu (former Spec. 5, Chinese lingist & radio intercept analyst).

Answer 2

Be careful when you answer that question. If you were full-time at an online school, you are not a full-time student in determining if you are a dependent, nor are you a full-time student for purposes of the Savers Credit. You are, however, a full-time student for purposes of claiming the Hope Credit.

You are correct to be asking questions if you are unsure of anything. Tax software does actually require some tax knowledge to prepare a return successfully. There are numerous tax pros who are happy to spend a few minutes on this board each day dispensing free advice. Take advantage of it and learn how to spot who is the expert and who isn't!

Answer 3

I am assuming you are asking about tax software or web tax?

Full time student is defined by the school you attended. For some semester based schools, that can be as low as 12 units for 1 semester. For some quarter unit based schools, that can be as low as 12 quarter units.

As for some tax questions, full time student means you meet your schools definition of full time school load for about 5 months (one semester or two quarters). This particular part affects retirement savings credit and maybe other benefits.

Do check out VITA for military. See if you have one at your base. Otherwise go to www.irs.gov and search for VITA.

Answer 4

BTW H&R Block sucks they lost a lawsuit that proved they encouraged people to invest in crappy money funds and when I did my taxes last year their refund was less than the one I got from FreeTaxUSA.com


Free Tax Help for the Military

IRS Tax Tip 2006-40

If you, or your spouse, are a member of the military, you may be eligible to receive free assistance with the preparation and filing of your federal tax return. The U.S. Armed Forces participate in the Volunteer Income Tax Assistance Program. The Armed Forces Tax Council oversees the operation of the military tax programs worldwide, and serves as the main conduit for outreach by the IRS to military personnel and their families. The AFTC consists of tax program coordinators for the Marine Corps, Air Force, Army, Navy and Coast Guard.

Military-based VITA sites provide free tax advice, tax preparation, return filing and other tax assistance to military members and their families. The volunteer assistors are trained to address military-specific tax issues, such as combat zone tax benefits.

Military commanders support the program by detailing members of the military to prepare returns and by providing space and equipment for tax centers. The IRS supports these efforts by providing tax software and training.

To receive this free assistance, you should bring the following records to your military VITA site:
• Valid photo identification
• Social Security cards for you, your spouse and dependents or a social security number verification letter issued by the Social Security Administration
• Birth dates for you, your spouse and dependents
• Current year’s tax package, if you received one
• Wage and earning statement(s) -Form W-2, W-2G, 1099-R
• Interest and dividend statements (Forms 1099)
• A copy of last year’s federal and state tax returns, if available
• Bank routing numbers and account numbers for direct deposit
• Total amount paid for day care
• Day care provider’s identifying number
• Other relevant information about income and expenses

If your filing status is Married Filing Jointly and you wish to file your tax return electronically, both you and your spouse should be present to sign the required forms. If it isn’t possible for both to be present, a valid power of attorney that allows tax preparation can be used to sign and file the return.
For more information, review IRS Publication 3, Armed Forces’ Tax Guide, available on the IRS Web site at IRS.gov or order a free copy by calling 1-800-TAX-FORM (1-800-829-3676).