Military Tax Deductions and Write-Offs

Members of the military enjoy certain tax benefits that are not available to civilians. These tax advantages are designed to recognize the unique challenges and expenses that military personnel face throughout the duration of their service. These tax code benefits also come with some specific military tax forms that you need.

Learn more about the various tax deductions and write-offs available to military members in 2026 and discover our tips for filing your taxes as a servicemember.

Types of Military Tax Deductions

There are four primary categories of military expenses that may be eligible for tax benefits:

1. Moving
2. Sale of primary residence
3. Uniforms
4. Travel and lodging
5. Education

Moving Deductions

If you are a member of the Armed Forces on active duty and you move due to a Permanent Change of Station (PCS), you are entitled to a deduction for reasonable unreimbursed moving expenses related to travel and the cost of moving household goods. This deduction can help alleviate some of the financial burden associated with frequent military moves.

Sale of Your Primary Residence

If you have owned and lived in your primary residence for two out of the previous five years, you can exclude up to $250,000 of capital gain ($500,000 for married couples filing a joint tax return) from income. 

In fact, most homeowners who meet this criteria don’t even need to report this on their income tax return. The primary reason to report this would be if you receive a Form 1099 from your real estate brokerage. Since the IRS also receives a copy of each 1099 Form, you would report this on your tax return to acknowledge the sale, perform the capital gains calculation, and then exclude the allowed amount. However, you may not deduct any losses you incur from the sale of your main home.

There is another provision, specifically for servicemembers. IRS Publication 523 refers to this provision as the ‘Stop the Clock’ exception to the previously mentioned “2 of the previous 5 years rule.”

The ‘Stop the Clock’ exception allows servicemembers to suspend the 5-year rule for up to 10 additional years for PCS moves. 

Example: Let’s imagine that you lived in your Norfolk, VA house for 2 years, then moved overseas. Under normal rules, you would have 3 years from the time you move to sell the house so that you qualify for the capital gains tax exclusion. 

However, under the ‘Stop the Clock’ exception, you can postpone this for up to 10 years, as long as you remain on active duty.

This little-known rule can come in handy if you know that you can’t sell your house in the middle of a PCS move, and if the prevailing real estate market indicates that waiting might be a better choice.

Uniform Deductions

At the federal level, tax deductions for military uniforms are not currently available, but some areas offer this deduction on a state-by-state basis. To qualify for a uniform deduction, the cost must have been incurred for a uniform that you are unable to wear off duty.

Some examples of eligible uniform expenses may include:

• Those not replacing a regular clothing item, such as an insignia or epaulets
• A reservist uniform that cannot be worn outside of performing reserve duties
• Professional dues
• Uniform cleaning and maintenance

Travel and Lodging Deductions

Military servicemembers may deduct unreimbursed travel expenses when they are “away from home” or their permanent duty station. You are considered “away from home” when you are away from your permanent duty station for longer than an ordinary day’s work.

Eligible expenses may include the out-of-pocket cost of meals, lodging, laundry, and business-related phone calls after the government has reimbursed eligible expenses on your travel claim.

Note: Expenses related to personal travel or overseas travel when stationed in the country are generally not tax-deductible.

Members of a reserve component of the Armed Forces may also be able to deduct their unreimbursed travel expenses upon their return, provided they travel more than 100 miles away from home in connection with their services as a member of the reserves. This can result in a more generous income adjustment compared to a similar itemized tax deduction.

Educational Deductions

Some servicemembers may be able to deduct expenses related to work-related education. To qualify for a tax deduction, the education must meet certain criteria:

1. The education was required by law or by your employer
2. The purpose of the education was to maintain your salary, status, or job position
3. Your employer has a bona fide purpose for the education
4. The education helps to maintain or improve the necessary skills for your current work duties
   

In some situations, travel and other expenses related to obtaining an eligible education may also be deductible. Education-related deductions do not apply to education obtained to meet minimum job requirements or used to learn a new trade or profession.

Military Tax Filing Tips

Aside from tax deductions, write-offs, rebates, or other forms of tax breaks, there are additional tax-related resources available to Veterans and active servicemembers.

Here are four tips to take advantage of these resources when filing your taxes:

1. Familiarize Yourself With Other Military Tax Benefits

In addition to deductions, servicemembers should be aware of other military tax benefits available to them. You may be eligible for benefits such as exclusionary pay, tax liability forgiveness, penalty-free retirement deductions, earned income tax credit, and deadline extensions when filing your taxes.

Familiarizing yourself with these benefits can help reduce your tax liability, maximize your tax savings or provide more time to file your taxes.

2. Know What is Not Eligible for a Tax Deduction

While military members can benefit from various tax deductions, not all military-related expenses are tax-deductible. For example, you cannot claim the cost of haircuts on your taxes, even if they are related to your military duty requirements.

Understanding what expenses are not eligible for deductions can save you time and frustration during the tax filing process.

3. Use Military-Specific Tax Filing Resources

The Department of Defense offers a free tax filing software called MilTax, tailored exclusively for military servicemembers. MilTax offers tax preparation and electronic filing software with no income limits, personalized support from experienced tax consultants with military expertise, and up-to-date information on tax filing.

MilTax is ideal for individuals with tax situations unique to military service, such as deployments, combat pay, training pay, housing and rental expenses, and multi-state tax filings. Eligible servicemembers can use this platform to electronically file their federal tax returns and up to three state tax returns for free.

4. Consider Free Tax Return Preparation

Some Veterans or military servicemembers may qualify for free tax return preparation through the IRS Volunteer Income Tax Assistance program. This program offers assistance from trained volunteers who can help you complete your tax return at no cost.

The Bottom Line

Military tax deductions and write-offs can provide significant financial relief to eligible servicemembers. By understanding the available benefits and resources and taking advantage of our tax filing tips, servicemembers can maximize tax savings and reduce the financial stress associated with a military lifestyle.

Check out our guide to preparing your taxes to get a head start on the filing process!