FORT RUCKER, Ala. (April 23, 2015) -- The Fort Rucker Tax Center had another successful season helping Soldiers file their taxes to get the most of their return.
Although not all Soldiers were eligible for a tax return, those on the installation who did received a total of $388,471 in state refunds and $2,554,984 in federal refunds for a total of almost $3 million, according to Tod Clayton, volunteer income tax coordinator at the center. The center also filed a total of 1,291 e-files for federal and 728 state returns, saving Soldiers a total of $392,336 in preparations fees.
"The season was a complete success," he said, adding that although the tax season is over, the tax center will still operate year round at the legal assistance office where it will continue to serve Soldiers.
"We are still open for Soldiers who are deployed and for those who have not filed their taxes yet due to an extension or amendments on their returns," he said. Soldiers can file amendments for up to the past three years if they feel a mistake was made on past returns. They will need to file a 1040X form and provide their past tax returns.
"If Soldiers made a mistake on their returns, they should see us to do an amended return. It's something we can do year round that we're happy to help with," said Clayton, adding that people should call the legal assistance office to make an appointment. "I've had a few people come in and tell me that they forgot to do a few things and I've been able to help them with their amended returns."
For those with extensions, Clayton said that typically people will not be penalized for filing for an extension, but if a balance is due, it's not an extension to pay one's taxes. Taxes are meant to be paid by April 15, he said, and an extension only helps a person who doesn't have a balance due. Those who owe taxes are subject to interest and penalties by the Internal Revenue Service.
Although the season is over, Clayton said it's never too soon to start preparing for next tax season.
"If people are getting a large refund back or owing a lot of money, then they might want to adjust their withholdings and now is the time to do it," he said. "Also, if there are big changes in your life, such as going from single to married, then you may be getting more money back, and these are things you need to adjust for.
"Even though the next tax season seems far away, we're already four months into the calendar year, so people will be four months behind if they didn't get a jump on it from the start," he continued. "You want to make sure that you keep what you owe, if anything, under $500. If you owe more than that, you're supposed to estimate taxes, which requires people to pay out every quarter."
If the adjustments aren't made on their tax forms, individuals could either have too much taken out of their paychecks or not enough, which could result in a large refund or a lot of money owed at the end of the year.
Although Clayton said that a large refund might not seem like a bad thing, it just means it's less money that people are getting per paycheck, so if its money that they could use now, they need to make the adjustments as soon as possible.
It's a matter of wanting the money in your paycheck or wanting it all at the end of the year, he said, and putting more toward taxes is a good way for some to save money.
Another thing that Clayton said Soldiers and Families should look for is which state they are claiming residency in when doing their taxes.
"Depending on the state, a lot of states don't have income tax for military personnel, so if they have residency in a state that doesn't tax military pay, but currently reside in one that does, they might be able to avoid paying state income tax," he said, adding that it can be a slippery slope and Soldiers should ask a tax professional first before making those changes.
"It can get complicated, but a Soldier can't visit Destin and then claim to be a resident of Florida," said Clayton. "They need to be able to establish residency in that state by providing a local address or being registered to vote in that state."
When in doubt, always ask, he added.
For more information, call 255-3482.
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