IRS Publication 3 covers the special tax situations of active members of the U.S. Armed Forces. The Military section of the IRS website also has a wealth of information for military members and veterans.

I was deployed and didn’t file my Federal Tax Return; can I still file and get a refund?

Unless deployed to a combat zone, you do not get an automatic extension to file. For most sailors, tax withholding (from your paycheck) is how income tax is paid. If you did not file a tax return for a particular year, the time limit to claim a refund is generally 2 years from when the return is due (withholding is deemed paid when the return is due). For example, if you want to claim a refund from withholding for 2018, you would have to file a return before April 15, 2021 (return was due in April 15, 2019 + 2 years).

I’m stationed overseas and my spouse works off-base, how do we report that income?

With limited exclusions, U.S. Citizens and Residents are subject to U.S. income tax on their worldwide income. This includes income earned in foreign countries (note: if you are stationed in Guam, you are still in the U.S.). How this income is treated depends on your spouse’s U.S. citizenship/residency status and the source of the income. We recommend consulting a tax professional if this situation applies to you.

I married a non-US citizen overseas, does this change anything?

If your spouse is a Nonresident Alien, he/she is not required to file a U.S. tax return. The Nonresident Alien spouse may elect into the U.S. Tax System by filing a joint tax return with the Sailor, but his/her worldwide income will be subject to U.S. tax. If your spouse is a Resident Alien, (e.g. green card holder), he/she will be taxed as a U.S. Citizen. For more information, see IRS Publication 519.

If my spouse or I have a foreign bank account, do I have to report that?

All U.S. Citizens and Residents must file a FBAR (Report of Foreign Bank and Financial Accounts) if both of the following apply:

(1) You have an interest or signature authority over a financial account outside the U.S.;

(2) Aggregate value of foreign accounts exceeded $10,000 at any time during the year

This reporting is separate from your Federal Tax Return. Violations are subject to criminal and/or civil penalties. For more information, see the FBAR section on the IRS website.