Friday, February 27, 2009

Tax Deduction for 2008 For National Guard and Reserves

A reservist (Army, Navy, Marine, Coast Guard Reseve, Army Natl Guard, Air Natl Guard) who travels more than 100 miles from home to perform services as a member of their service can deduct 100% of the COST OF TRAVEL & 50% of their MEALS; report the expenses on IRS Form 2106 and the total deduction on Form 1040 Line 24.

What's NEW is that the deduction can be taken by Reservist who do NOT itemize deductions. The total deduction is no longer a Miscellaneous deduction (Schedule A), but a deduction DIRECTLY reducing income and income taxes.

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