Tampa, Fla., January 28, 2004/PRNewswire/ - Military personnel who are serving, or have served, in a combat zone are reminded to take advantage of several new tax benefits for U.S. armed forces members that could save them hundreds of dollars come April 15, according to Amscot Tax Service Bureau Director Amy Otteson.

"Basically," Otteson explains, "the IRS has streamlined the tax code to alleviate the worries of armed forces members who are presently serving their country, as well as reward the soldiers who have already served."

One of the most beneficial provisions Otteson mentions is excluded income. In essence, any pay that a soldier receives while serving in a combat zone, any living and family allowances, moving and travel expenses, as well as certain other payments received can now be excluded from income that is reported for tax purposes.

In addition, military personnel can exclude gain on a home sale, provided that they have owned and used the home as their main residence for two of the five years prior to the sale.

Second, Otteson says reservists can deduct their travel expenses if they are under orders, with or without pay, and/or are away from their main place of business in order to perform drills and training.

What's more, once reservists are called to active duty, they can deduct travel expenses if they keep their regular job while on active duty, return to it once their service is through, and are stationed away from their regular job or business. Otteson says that it's important to note, however, that these expenses can only be deducted if they exceed basic sustenance allowances.

"The law now recognizes the extra expenses these soldiers acquire to serve our country, and it provides them with some hard-earned reprieve for the sacrifices they make that go above and beyond their call of duty," Otteson says.

Otteson also emphasizes that military personnel should be aware of the extension they receive to file their taxes. Currently, all members involved in a combat zone or contingency operations receive an extension for filing tax returns, paying taxes, filing claims for refunds and any other actions related to federal income taxes.

Finally, Otteson champions the new death gratuity payment, which doubles the military death benefit paid to survivors of military personnel that are killed in the line of duty from $6,000 to $12,000. What's more, it ensures that taxes will not be paid on those benefits.

"The changes that have been made not only deal with the inequities in the tax code that disadvantage our military personnel, it also shows our country's support for the men and women who are committed to protecting our freedom," Otteson adds.

Headquartered in Tampa, Fla., Amscot Tax Service is a division of Amscot Financial, a leading provider of convenient retail financial services for the mainstream consumer. Founded in 1989, Amscot Tax Service provides income tax preparation, electronic filing services and refund anticipation loans through its more than 50 tax preparation offices throughout Central Florida. For additional information, please visit the division's web site at www.amscottax.com.