Hire a Veteran and Win the War on Taxes, March 2, 2010 posted by John Allen
By Blake Christian, CPA, MBT and Chuck Swenson, CPA, PHD
Much is being written and debated regarding getting our troops back home as quickly and safely as possible. Regardless of your political leanings, or specific timetable for the troops to return, we can all agree that once these brave men and women return home, we owe them the opportunity to find good jobs and assist them in starting or resuming their careers.
While business owners should make every effort to assist these returning veterans by giving them jobs, there are a number of federal and state tax incentives that should provide an added reason to give them top priority in the job market.
Currently, 26 states offer partial, or total exclusions, from state-level taxes for combat and/or other military compensation paid to troops/reserves. The five states offering outright tax exemption for military pay include: Illinois, Michigan, Montana, Arizona and Tennessee. Certain federal changes over the past few years also allow more flexibility for the military in funding IRA