H&R Block Salutes Military Heroes With Six Tax Tips

KANSAS CITY, MO, Nov 09 (MARKET WIRE) --
Taxes may be the furthest things from the minds of our military as they
serve in remote areas around the world. But distance and time can add to
the complexity of tax issues. H&R Block (NYSE: HRB) offers six answers to
commonly asked tax questions from those in uniform.

1. I'm serving in a combat zone. What's my tax deadline?

The IRS grants extra time to file returns, request refunds or even pay
taxes due. The extension is:

1) The period of time served in a combat zone, plus

2) Any continuous time outside the U.S. you were hospitalized for
injuries sustained in a combat zone, plus

3) 180 days.

For example, for soldiers whose duty in Iraq ends Dec. 31, 2009, their
2009 tax return is due Dec. 12, 2010 -- 180 days after their last day of
service and after the usual tax return filing due date of April 15, 2010.

2. I'm active military but not in a combat zone. What's my 2009 tax filing
deadline?

The tax filing deadline is April 15, 2010. If you can't file your return
by then, you can apply for a six-month extension. However, an extension
to file is not an extension to pay. To avoid late fees and interest, you
must estimate your taxes owed and submit any balance due, along with your
extension form.

If you're on a tour of duty outside the U.S. or Puerto Rico, you have an
automatic two-month extension to file your returns. If that's not enough
time, you can file the extension form for an additional four months.

3. Do I have to sign my own tax forms?

Yes. Military personnel are required to sign their own tax forms. If
you're out of the country, the return may be sent to you or power of
attorney must be granted for someone else to sign and file the return.
You can establish power of attorney by completing this form.

One exception: Soldiers hurt in a combat zone may have someone else sign
the return without pursuing power of attorney. If that's the case, a
statement should be attached to the return explaining why the soldier
isn't signing their own return.

4. Am I eligible for the earned income tax credit?

A credit worth up to $5,657 is available to military personnel with earned
income of less than $43,279, or $48,279 for joint filers. To qualify,
taxpayers also must have children under the age of 19 or full-time
students between the ages of 19 and 23.

For military personnel without children, a smaller credit worth up to $457
is available. However, the earnings threshold is $13,440 for an individual
or $18,440 for a joint return.

5. Can I claim the Making Work Pay Credit?

Most taxpayers started taking home more in their paychecks last year
thanks to a change triggered by the Making Work Pay Credit. The credit is
up to $400 for single filers or $800 for joint filers. But the increased
take home pay means taxpayers should take another look at the withholding
allowances on their W-4s. H&R Block's Making Work Pay calculator can help
military personnel determine if they're withholding enough or if they
need to adjust their allowances before the end of the year.

6. Will I be penalized if I take money out of my retirement plan?

No. Soldiers called to active duty may take penalty-free distributions
from retirement plans. Unused funds from flexible spending accounts may
be used tax- and penalty-free.

H&R Block offers a 10 percent discount on services for military at offices
on more than 50 military bases across the country.

"Military personnel often don't know about the many tax credits and
deductions available to them," said Ken Treat, H&R Block senior vice
president. "The H&R Block tax professionals in and around our military
base locations can help those in uniform claim these important tax
benefits."

For more information about military tax benefits, visit
www.hrblock.com/military, the IRS' Armed Forces' Tax Guide or the IRS'
Tax Guide for U.S. Citizens and Resident Aliens Abroad.

About H&R Block

H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services
provider, having prepared more than 500 million tax returns since 1955.
In fiscal 2009, H&R Block had annual revenues of $4.1 billion and
prepared more than 24 million tax returns worldwide, utilizing more than
120,000 highly trained tax professionals. The Company provides tax return
preparation services in person, online through H&R Block Online, through
its TaxCut(R) software and through other channels. The Company is also
one of the leading providers of business services through RSM McGladrey.
For more information visit our Online Press Center at
www.hrblock.com/press.

For Further Information
H&R Block Media Desk
816.854.4287
Email Contact

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