Tax preparation is a recurring cost that many veterans do not need to pay. Several free programs exist, they are staffed by trained and certified volunteers, and they handle the situations veterans typically have.
VITA
Volunteer Income Tax Assistance is an IRS program offering free tax preparation, generally to people who earn below an income threshold, people with disabilities, and taxpayers with limited English.
Volunteers are IRS-certified. Many VITA sites operate on or near military installations and are experienced with military and veteran returns specifically — combat pay, multi-state filing after a PCS, and the tax treatment of various benefits.
Find a site through the IRS locator at irs.gov/vita or by calling 800-906-9887.
TCE
Tax Counseling for the Elderly offers free preparation with a focus on taxpayers 60 and older, particularly on retirement-related questions. Many sites are operated by AARP Foundation Tax-Aide, and in practice they often serve people of other ages as well.
MilTax
MilTax, through Military OneSource, provides free tax software and consultation. It is designed for military-specific situations and is generally available to service members, and to veterans within a period after separation.
Eligibility windows change, so check current terms at militaryonesource.mil.
IRS Free File
For taxpayers below an income threshold, IRS Free File provides free access to commercial tax software through the IRS. Above the threshold, free fillable forms are available for people comfortable preparing their own return.
Start at irs.gov/freefile — going directly through the IRS matters, because reaching the same companies through their own sites can route you to paid products.
What to bring
- Photo ID for you and your spouse if filing jointly
- Social Security cards or ITIN letters for everyone on the return
- All income documents — W-2s, 1099s, and any others
- Last year's return if you have it
- Bank routing and account numbers for direct deposit
- Documentation of expenses you plan to claim
- Both spouses present if filing jointly, since both must sign
Two things veterans often get wrong
VA disability compensation is generally not taxable income. Neither are most VA benefit payments. Veterans sometimes report these unnecessarily, and sometimes assume incorrectly that other income is exempt because this one is. If your situation is unclear, ask a VITA volunteer — that is what they are there for.
A retroactive disability determination can matter for prior years. If your rating changed with a retroactive effective date, there may be implications for previously filed returns. This is a situation worth raising specifically rather than assuming it is handled.
Why we mention refunds
For many households the tax refund is the single largest sum of money that arrives all year. What happens to it matters more than almost any other financial decision in the twelve months around it.
We are not going to tell you what to do with yours. But it is worth deciding before it arrives rather than after — whether that is paying down a high-rate balance, covering a deposit for housing, or setting aside a cushion so the next unexpected expense does not become a payday loan.
If you would like to think that through with someone, Credit4Vets is free and here.
Sources: IRS — Free tax return preparation for qualifying taxpayers · IRS Free File · Military OneSource