Military Tax Deduction
There is a special provision for members of the National Guard or Reservists who incur travel expenses that are not reimbursed. This military tax deduction is a reduction of income rather than an itemized deduction.
If you are a member of the National Guard or a Reservist and incur some un-reimbursed travel expenses as a result of your service, you have a way to take this as a reduction of income rather than an itemized deduction on Form 1040, Schedule A. The travel must be overnight and more than 100 miles from your home. The purpose must be a drill or meeting. The expenses must be ordinary and also necessary. If these conditions are met, you can claim this special military tax deduction.
The amount of the military tax deduction, or reduction in income, will be limited to the regular Federal Per Diem payment which covers lodging, meals, and incidental expenses. It also includes the Standard Mileage Allowance, for use of your personal automobile, plus and parking, ferry fees, or tolls.
The reduction in income is claimed on IRS Form 2106 or Form 2106EZ and the appropriate amount in entered on the proper line on your Form 1040. If you do have legitimate expenses that exceed the allowable limits of the Federal Per Diem or Standard Mileage Allowance, they must be claimed as regular itemized deductions on your tax return.
There are certain other military tax deductions that are allowed. Since military uniforms can be generally worn off duty, the upkeep is not deductible. If the uniform, due to military regulations, can not be worn off duty, the upkeep is deductible to the degree it exceeds the military uniform allowance. This applies also to certain kinds of educational expenses. When the educational expense is incurred for an activity that is required or substantially increases your qualifications for your position or a new related position, the expenses that exceed your allowance are deductible.
Normally, the military service is good about providing for the needs of servicemen. In most cases, such things as travel expenses, uniform allowances, and educational expenses are routinely and adequately reimbursed. If this is not the case, the amount of out of pocket expense is normally deductible as an itemized deduction. This policy views the military serviceman in the same manner as any other professional employee and allows deductions for necessary or required expenses incidental to the job and not reimbursed.