Guard/Reserve Members Lose Travel-Expense Tax Deduction After 2017

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By Debbie Gregory.

On December 20, 2017, Congress passed the Tax Cuts and Jobs Act (H.R. 1) designed to cut taxes on individuals and businesses, stimulate the economy, and create jobs. But one aspect of the act will have an impact on Guard and Reserve  members who travel less than 100 miles from home to military duty:  after filing their 2017 tax returns, they will no longer be able to deduct any unreimbursed travel expenses.

Lawmakers raised the standard deduction for single filers from $6,500 to $12,000, but also reduced the amount of personal deductions in the reform bill. As a result, some individuals with more unusual financial situations will see their taxes rise slightly, as those exemptions disappear.

According to Army Lt. Col. David Dulaney, executive director of the Armed Forces Tax Council, beginning with tax year 2018, the tax act suspends all miscellaneous itemized deductions, which included the itemized deduction reserve-component members could take for unreimbursed employee expenses on Schedule A of their Internal Revenue Service Form 1040.

While those who drill less than 100 miles away from their home won’t be able to take an itemized deduction, hey may be able to file for reimbursement from the Defense Department.

Those who drill more than 100 miles from home still can deduct their unreimbursed expenses as an above-the-line adjustment to their gross income.

On the flip side, more than 133,000 veterans may qualify for a refund of federal taxes they paid on disability severance pay dating back to 1991 ― taxes that shouldn’t have been collected in the first place.

Eligible veterans will have a year after they receive the notice to file a claim for the refund.

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