Honoring Our Veterans: Tax Benefits and Financial Guidance for Those Who Served
This Veterans Day, we honor the brave men and women who have served our country. At Holloway Financial Group, we are committed to helping veterans understand the financial benefits available to them, including tax breaks and other opportunities that can make a big difference in their financial well-being.
Tax Benefits for Veterans
Veterans are eligible for a range of tax benefits that can help them keep more of their hard-earned money. Understanding these benefits can be key to maximizing savings during tax season. Here are some important tax benefits that veterans should be aware of:
Disability Compensation: Payments received for disabilities due to service are not considered taxable income. This can significantly reduce your tax burden if you are a veteran receiving disability benefits.
Property Tax Exemptions: Many states offer property tax exemptions for veterans, particularly those with a service-related disability. Check with your local tax authority to see if you qualify for a reduction in property taxes.
Retirement Pay Exclusions: Some veterans qualify for exclusions or reduced taxation on their retirement pay, especially if they have a combat-related disability. Understanding how your retirement income is taxed can help with year-end planning and budget optimization.
Tax Credits for Education: Veterans using benefits from the GI Bill may also qualify for tax credits related to education expenses. This can help veterans transitioning back into civilian careers by reducing the cost of gaining new skills.
Financial Planning for Veterans
Beyond tax benefits, there are other key areas where veterans can optimize their finances:
Retirement Planning: Veterans often have access to both military pensions and civilian retirement accounts. Planning strategically can help maximize income in retirement, combining VA benefits, military pensions, and any civilian retirement savings.
Small Business Tax Deductions: Many veterans pursue entrepreneurship after their service. If you’re a veteran running a small business, there are various tax deductions and credits available to you, including deductions for startup costs and special loans with favorable terms.
Year-End Tax Planning: As the year draws to a close, veterans should consider contributing to retirement accounts or charitable organizations for additional tax deductions. Many charities that support veterans also provide tax-deductible donation opportunities.
We’re Here to Help
Holloway Financial Group is proud to support our veterans not just in words, but with services that make a real impact. Our team can assist you in navigating available tax breaks, optimizing your retirement plans, and managing your small business finances. We understand the unique needs of veterans and are here to ensure you make the most of the benefits you’ve earned.
If you or a veteran you know could use help with financial planning or tax preparation, please reach out to us. It’s our honor to give back to those who have given so much.
