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Military Finances 101: 5 Ways to do Your Taxes Right...and Quickly Thumbnail

Military Finances 101: 5 Ways to do Your Taxes Right...and Quickly

Taxes

With Tax Day right around the corner on April 15, it’s easy to feel overwhelmed. Even if you’re short on time, you can still file your taxes accurately and on time with focus and preparation. These last-minute tips will help you navigate the process efficiently and avoid unnecessary stress.

1. Gather Your Documents Quickly

The main task to focus on with Tax Day looming is to collect all your documents. They could include your W-2s or 1099s to report income, receipts for deductible expenses, and any relevant tax forms. Keeping them in one place helps avoid delays and errors as you prepare your return.

2. Don’t Overlook Deductions and Credits

In the rush to meet the deadline, many people miss out on valuable deductions and credits. Even if you’re short on time, it’s worth pausing to check whether you qualify for tax breaks, such as the earned income tax credit, the child tax credit, or education-related credits.

3. File for an Extension If Needed

If time is running out, filing for an extension can save you from late filing penalties. Submitting IRS Form 4868 gives you until October 15 to file your return.1 However, an extension only delays the filing, not the payment. If you owe taxes, estimate the amount as accurately as possible and make a payment to avoid penalties or interest.

4. Review Your Return Carefully

Even under a time crunch, make sure to review your return before submitting it. Common errors, such as incorrect Social Security numbers, math mistakes, or forgotten signatures (for paper filers), can lead to delays or penalties.

5. File Electronically for Faster Processing

Filing your return electronically (e-filing) is quicker and more reliable than mailing a paper return. The IRS processes e-filed returns faster, and choosing direct deposit for refunds ensures you get your money sooner. According to the IRS, e-filers will typically see their refunds in less than 21 days.2 If you’re in a hurry, e-filing is the best way to ensure everything is submitted on time without complications.

6. Set up a Payment Plan if You Can’t Pay in Full

If you discover you owe taxes but can’t pay the full amount immediately, don’t panic. The IRS offers payment plans and answers many frequently asked questions about payment plans on their website.3 While interest may apply, these plans often cost less than high-interest loans or credit card debt.

Filing taxes at the last minute is never ideal, but it doesn’t have to be chaotic. By staying focused, you can meet the deadline with confidence.

Military Finances are Different

One of the key areas where your finances are different than a civilian's is taxes. A lot of your compensation is tax-free. But even though it is it can affect your tax bill (check back next week). Or how about the fact that you can keep your residency in a state without an income tax (if you follow the rules)? These are just some of the ways your taxes are different than a civilian's. That's why we think Active and Retired Senior Military Officers should work with a financial advisor that "gets" you. If you'd like to find out how we work with clients just like you, use the button below to schedule a free, initial consultation.

If you found this article useful, you might like the following blog posts:

3 Mistakes Military Retirees Make on Their Tax Returns


Retired Military Finances 301: Is Tax-Free Income in Retirement "All That"


Retired Military Finances 201: I Contributed Too Much to my 401(k). Now What?






  1. https://www.irs.gov/pub/irs-pdf/f4868.pdf
  2. https://www.irs.gov/newsroom/direct-deposit-fastest-way-to-receive-federal-tax-refund
  3. https://www.irs.gov/payments/payment-plans-installment-agreements

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