Military & Veteran Tax Issues: Why Expertise Matters — and How PIM Tax Services Delivers

Military and veteran families often face a unique financial landscape — one where federal and state tax rules can quickly become complicated. From PCS moves and combat zone pay to disability benefits and multi-state filing, the details matter. And when those details are misunderstood or overlooked, the result can be overpayment of taxes or even receiving an unexpected notice from the IRS or a state agency.

At PIM Tax Services, we’ve built our practice around helping service members, veterans, and their families navigate these challenges with confidence.

Why Military and Veteran Returns Are More Complex

The tax code contains dozens of provisions that apply specifically to military personnel and veterans. Here are just a few that can add layers of complexity:

• Service Members Civil Relief Act (SCRA) Protections – SCRA affects how states can tax your income, especially when spouses maintain residency in a different state from where they are stationed.

• Multiple State Filings – Military families often need to file returns in more than one state. PCS orders can trigger even more state filing requirements. Knowing when (and when not) to file in a state can save significant money and stress.

• Rental Properties – Military families have a high rate of rental property ownership. There are special provisions in the Internal Revenue Code for military members that can impact the tax treatment of their rental properties.

• Special Deadlines – Deployments and certain assignments extend IRS and state filing deadlines — but not all tax software automatically applies these extensions.

• Veteran Benefits – VA disability payments, VA education benefits, and military retirement pay each have their own tax rules, which can also vary by state.

• Transition to Civilian Life – Changing from active duty to civilian status can mean major changes in taxable income, deductions, and credits.

When you combine these rules with frequent moves, changes in family composition, and differences between state laws, it’s easy to see why “military taxes” are in a category of their own.

Why Choosing the Right Tax Professional Matters

Not every tax preparer understands the nuances of military and veteran tax law. Many national chains and self-preparation software programs simply aren’t designed to handle the details that can make a big difference in your refund or tax bill. Mistakes can include:

• Paying state taxes you don’t owe

• Missing deductions for moving expenses (for certain PCS moves)

• Overlooking combat zone extensions

• Misreporting veteran benefits

• Failing to optimize spouse residency elections under the Military Spouses Residency Relief Act

The IRS won’t proactively fix these errors for you — and in many cases, you won’t even know you missed out unless you work with someone who knows what to look for.

How PIM Tax Services Helps

PIM Tax Services was founded with a mission to serve military and veteran families. We prepare returns for clients across all branches of service — active duty, reserve, guard, retirees, and surviving family members — in all 50 states and overseas.

Our team has in-depth knowledge of:

• The Service Members Civil Relief Act (SCRA) and Military Spouses Residency Relief Act (MSRRA)

• Multi-state and non-resident return strategies

• Combat zone tax provisions and filing extensions

• State-by-state rules for taxing military pay and veteran benefits

• Transition planning for separating and retiring service members

Because we work with these issues daily, we know how to ask the right questions, apply the right laws, and use the right forms to get you the best outcome — legally and ethically.

The PIM Difference

• Specialized Expertise – We focus on the military and veteran community; this isn’t a sideline for us — it’s our specialty.

• Personalized Service – We take the time to understand your duty history, your family situation, and your financial goals.

• Nationwide Reach – Whether you’re stationed in Virginia, deployed overseas, or retired in another state, we can prepare your returns securely and efficiently.

• Peace of Mind – With PIM, you don’t have to worry about missing a law change or filing requirement. We stay up to date so you don’t have to.

If you’re a service member, veteran, or military family member, your tax situation deserves a specialist. Let PIM Tax Services put our experience to work for you — so you can focus on your mission, not your taxes.

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