Three Tax Deductions Military Families Often Miss

Military tax deductions have gotten complicated with all the rule changes flying around. As someone who’s helped service members find money they didn’t know they were leaving on the table, I learned everything there is to know about these overlooked opportunities. Today, I will share it all with you.

Here’s the deal: tax season brings opportunities many military families overlook. Beyond the standard deductions, several military-specific benefits can reduce your tax burden. Here are three commonly missed deductions worth investigating.

1. Unreimbursed Moving Expenses

Probably should have led with this one, honestly, since it applies to almost every PCS. While civilians lost this deduction in 2018, active duty military members can still deduct unreimbursed moving expenses for PCS moves. That’s what makes being military different – you kept benefits others lost.

This includes mileage for driving your personal vehicle, lodging during the move, and shipping costs not covered by your orders. Keep detailed receipts. I’ve seen families leave hundreds of dollars on the table just because they didn’t track their expenses.

2. Reserve Travel Expenses

Reservists and National Guard members traveling more than 100 miles from home for drill can deduct travel expenses. This includes mileage, lodging, and 50% of meal costs. These above-the-line deductions reduce your adjusted gross income directly. If you’re drilling far from home, these deductions add up fast.

3. Uniform Maintenance

If your uniform costs exceed your clothing allowance and you can’t wear your uniform off-duty, you may deduct the difference. This includes dry cleaning, alterations, and replacement items not covered by your allowance. Not a huge deduction, but every bit helps.

Documentation Is Key

Keep receipts, orders, and records throughout the year. A dedicated folder or app makes tax time much easier and ensures you capture every eligible deduction. That’s what makes good record-keeping so valuable – it turns into actual money back in your pocket.

Consider consulting a tax professional familiar with military-specific deductions. The savings often exceed the preparation costs. Don’t leave money on the table.