Meet Melvin McBean, an Air Force service member, along with his spouse, who is also an active-duty military member. With a combined income of $290K, they wanted to ensure they were taking full advantage of the unique tax benefits available to military families.
The Challenge:
- Both spouses actively serving with limited time to navigate tax strategies
- Wanted to reduce their overall tax burden and maximize take-home pay
- Needed guidance on how to structure income and benefits for efficiency
Our Solution:
- Used legal residency rules to eliminate state income taxes by claiming residency in a tax-free state
- Took the higher standard deduction to reduce taxable income without complex itemizing
- Claimed Child & Dependent Care Tax Credits to offset expenses while both were serving
The Outcome:
- $10,000 in tax savings
- Lower taxable income and increased cash flow
- Fully optimized military-specific tax benefits
Military families often miss out on these built-in savings. With proactive planning, Melvin and his spouse were able to keep more of what they earned while continuing their service.