Military personnel serving overseas have an extra year to qualify for the government's $8,000 first-time homebuyer credit. They have until April 30, 2011, to sign a contract on a principal residence and the transaction must close by June 30, 2011.
Reservists are allowed to deduct expenses if they have to travel more than 100 miles from home as part of their assigned duties.
Soldiers are exempt from taxes for pay earned during each month they serve in an overseas combat zone.The recently enacted Military Spouses Residency Relief Act, in place for the current tax season, exempts the husbands and wives of military personnel who relocate as part of their orders from the new state's income tax withholding. For spouses in this situation, they can elect to retain their prior state residency for tax purposes without having to file in the state where they worked. -- Reported by Joe Mont in Boston.