Many members of the military join to get an education, or to qualify for different Veterans benefits after they leave military service. Serving your country allows you to get Montgomery GI benefits, and Tuition assistance benefits that allow you to attend classes many times when you could not afford to. But there is a number of different financial benefits that are available to members of the military who enlist in the Armed forces. These financial advantages are in the form of tax deductions, among other things, that can reduce your taxes and take it off the top of what you pay annually in taxes. This can help many enlisted Servicemembers get a great start financially each year.
Many members of the Military wait to attend school until after they are done with active duty service, but there are also many that try to do both, attending school part time or at night while on active duty. If you are paying expenses for an eligible student, and you pay for the expenses for education at a qualified institution of higher learning, and the student is yourself, your dependent, or your spouse, then you may be eligible to claim up to $4,000 off your tax bill.
To qualify for the possible $4,000 dollar deduction you have to not earn more than $65,000 dollars a year gross income. Costs for fees, and tuition are deductible, and these costs for first three months of 2008 are also eligible. You cannot claim tuition paid by tax-free funds such at Montgomery bill, military TA, or federal financial aid. If you have to file separately as a married person, or last if you are a alien or non resident, then you may not be eligible for a tax deduction. These are excellent programs, but they have limits. For others, there is a more basic tax deduction that you can qualify for if you meet a certain number of qualifications.
For example if you have tuition at $11,000 dollars a year, and you pay for nearly all of it, $8,000 dollars with financial and military educational aid, then all you can claim is the remaining $3,000 dollars. This can give you an advantage financially and help provide you with funds to use to your education.