Can Military Spouses and Veterans Use TurboTax for Free?

Photo by Kelly Sikkema on Unsplash

Military service has many benefits, including tax filing assistance for active-duty personnel. But what about their spouses and veterans? Many wonder whether TurboTax Free extends to military families and those who have served. While TurboTax does offer free filing for certain service members, eligibility depends on factors like rank, income, and tax complexity. Understanding these details can help military spouses and veterans determine whether they qualify for no-cost filing and what options are available.

Who Qualifies for Free TurboTax Military Filing?

TurboTax offers free federal and state tax filing for active-duty enlisted service members and reservists ranked E1 through E9. This benefit is designed to help lower-ranking military personnel file their taxes without added expenses.

However, military spouses and veterans do not automatically qualify for this offer. If a military spouse files jointly with an eligible service member, they can use the free TurboTax military filing option. But if they are filing separately or as the primary taxpayer, they may need to upgrade to a paid version, depending on their tax situation.

Tax Filing Options for Military Spouses

Military spouses often deal with unique tax situations, including frequent relocations, income earned in different states, and residency status changes due to military moves. The Military Spouses Residency Relief Act (MSRRA) allows spouses to maintain their home state of residency for tax purposes, even when stationed elsewhere.

For those with a simple tax return (such as W-2 income and the standard deduction), TurboTax’s Free Edition may still apply. However, if additional tax credits, self-employment income, or multi-state filing requirements come into play, a paid version of TurboTax may be necessary. Checking eligibility before starting the filing process can help avoid unexpected costs.

Free Filing for Veterans: What to Know

Unlike active-duty service members, veterans are not automatically eligible for free TurboTax military filing. However, veterans may qualify for free tax filing through other programs.

Some veterans’ organizations also partner with tax service providers to offer free assistance.

Veterans with disability benefits should also note that VA disability payments are not taxable, which can simplify their tax return. However, if they receive other forms of taxable income, they may need to upgrade to a paid TurboTax version, depending on their filing needs.

State Tax Considerations for Military Families and Veterans

Many states offer military families and veterans tax benefits, such as exclusions on military retirement pay or state residency flexibility. Some states do not tax military retirement income, which can significantly reduce a veteran’s taxable income.

Understanding state tax laws is essential for military spouses, as some may allow exemptions based on the Servicemembers Civil Relief Act (SCRA) and MSRRA. TurboTax provides guidance on military-specific tax rules, but complex state filings may require an upgraded version beyond the free edition.

Alternative Free Filing Options

For military spouses and veterans who do not qualify for free TurboTax, other free filing options may be available:

• Military OneSource MilTax: Offers free tax filing for military families, regardless of rank or tax complexity.
• Volunteer Income Tax Assistance (VITA): Available at military bases and veteran support centers, offering in-person tax help.
• IRS Free File: Allows veterans and low-to-moderate-income filers to use online tax software for free.

Exploring these alternatives can help military families and veterans find the best free filing option for their needs.

While TurboTax Free is available for enlisted service members up to rank E9, military spouses and veterans do not automatically qualify. Veterans can explore IRS Free File, Military OneSource, and VITA programs for no-cost filing assistance. Checking eligibility early and exploring alternative resources can make tax season easier for military families and veterans.