Tax Cuts For Troops And What It Means For Businesses
With the new legislation for the 2018 tax year, a high number of military members will see a decrease in their tax bill. This means they will have more to spend in their communities and local businesses which makes this a perfect opportunity for SMI to take advantage of some military marketing. Here’s how the tax breaks work:
Overall Deductions for Active Military
With The Tax Cuts and Jobs Act, most families will see a 3% decrease in what they owe overall in taxes and the standard deduction and Child Tax Credit have both doubled. This should significantly lighten the load for most military families.
Part of the Veterans Benefits and Transition Act of 2018 allows military spouses the opportunity to use their spouse’s state of legal residence as their own for state and local tax purposes. This could mean a big difference if the spouse’s legal residence is a state with low or no local taxes.
The Combat-Injured Veterans Tax Fairness Act any tax withholdings for disability severance for injured veterans. The 133,000 veterans who are affected by the Act have until July to file for their refunds.
With all of this freed up money back in the hands of our military members and their family, now is the time to push your military marketing and reach this community with your message. For more details on the tax breaks, check out the Military News article.