The Rules That Separate
a Specialist from Someone
Who's Seen Your Return Before
Military & Veteran Tax Preparation in Virginia exists because military returns look familiar on the surface - a W-2, some income, a standard return. That familiarity is exactly what gets the return done wrong. The rules that govern a military return are not variations on standard tax law. They are specific federal statutes - SCRA, MSRRA, IRC Sec. 112 - that require knowledge the IRS doesn't explain on the form and that general software doesn't prompt the preparer to ask about. Here's what gets missed most often in Military & Veteran Tax Preparation in Virginia:
Combat pay was included in taxable income
Pay earned in a combat zone is tax-free by law. But if your preparer doesn't recognize the combat zone code on your W-2, that pay gets taxed anyway. There's also a special Earned Income Credit option for combat pay that can put real money back in your pocket - and most preparers never bring it up.
BAH and BAS were treated as income
BAH and BAS are not taxable and won't show up on your W-2. But a preparer who doesn't understand how these allowances work can make errors that affect other parts of your return. We handle them correctly every time.
SCRA protections weren't applied - double taxation resulted
A federal law called SCRA protects you from being taxed by the state where you're stationed if you're only there because of military orders. You keep your home state for tax purposes and should only file there. When this rule is missed, members end up paying taxes to the wrong state - or paying twice.
The MSRRA spousal election was never made
A law called MSRRA may allow a military spouse to use the service member's home state for their own taxes - even if they're working in a different state. This can eliminate an entire state tax bill. Most military spouses don't know this option exists.
VA disability compensation was treated as taxable
VA disability pay is never taxed - no matter your rating or how it's paid. But military retirement pay, CRDP, and CRSC each follow different tax rules. Mixing them up is one of the most costly mistakes in veteran tax prep. We know the difference and apply it correctly.
PCS move deductions were missed entirely
Civilians lost the moving expense deduction in 2017 - but active duty military members who move under orders kept it. This exception is frequently missed because most preparers assume the civilian rule applies to everyone. It doesn't, and we make sure you get every dollar you're owed.
💡 None of this is obscure. It's just specific - and specificity requires preparation.
Every item above is a known rule with a known application. The gap isn't in the law. It's in whether your preparer has seen enough military returns to know what questions to ask before the return is filed. At Griffin & Johnson, these are not edge cases we research when they come up. They are the standard questions we ask on every military return - every client, every year, without prompting.
The Specific Statutes
That Govern Your Return
These are not general tax concepts applied to a military situation. They are federal statutes and IRS rules that apply exclusively - or primarily - to military returns. We apply them correctly, consistently, and with the nuance each situation requires.
Pay earned in a combat zone is tax-free - including hostile fire and imminent danger pay. Enlisted members and warrant officers get a full exclusion; commissioned officers have a cap. There's also an Earned Income Credit option tied to combat pay that most non-specialist preparers never claim.
The Servicemembers Civil Relief Act (SCRA) means you only pay state income tax to your home state - not the state where you're stationed. You keep your home state for tax purposes regardless of where the military sends you.
The Military Spouses Residency Relief Act (MSRRA) may let a qualifying military spouse use the service member's home state for their own taxes - even if they're working in a different state. This can wipe out an entire state tax bill. It must also be applied to employer withholding.
VA disability pay is never taxed, no matter your rating. CRDP is taxable; CRSC is generally not. Military retirement pay follows its own rules. Getting these three streams mixed up is one of the most common and costly mistakes in veteran tax prep.
Civilians lost the moving expense deduction in 2017, but active duty members moving under PCS orders kept it. Most preparers assume the civilian rule applies to everyone - it doesn't. If you moved under orders, you may be owed a deduction that was never claimed.
TSP contributions made from combat zone pay are tax-free and need to be tracked separately from your other contributions. When you retire and withdraw that money, it won't be taxed again - but only if it was tracked correctly throughout your career.
If you're deployed to a combat zone, you automatically get extra time to file your taxes - your deployment period plus 180 days. This applies to federal returns and usually state returns too. Penalties and interest are paused during that time.
BAH and BAS are not taxable and won't appear on your W-2. But they can affect credit calculations like the Earned Income Credit and Child Tax Credit. A preparer who doesn't understand how these allowances work can make errors that cost you money.
Every Military Tax Scenario,
Handled with Depth
Military & Veteran Tax Preparation in Virginia covers situations that don’t fit a single template. Active duty returns look different from veteran transition returns. Guard and Reserve situations have their own rules. Military spouses navigating MSRRA face a specific set of decisions. We handle all of them with the same depth of preparation - not one specialty applied broadly, but the right expertise applied precisely.
The Shipyard That Defines Newport News -
We Know Its Workforce.
For clients seeking Military & Veteran Tax Preparation in Virginia, Newport News Shipbuilding - part of Huntington Ingalls Industries - is the largest industrial employer in Virginia and one of the most recognizable landmarks in all of Hampton Roads. The shipyard has been building and maintaining the U.S. Navy's fleet for over 130 years, and its workforce of tens of thousands of skilled tradespeople, engineers, and defense contractors defines the economic backbone of Newport News.
Shipbuilding employees carry a distinct tax profile: W-2 income with union benefits, potential overtime, defense contractor nuances, and in many cases multi-state filings for those who commute across the Hampton Roads region. For employees who also serve in the Guard or Reserve - a common combination in Newport News - the return carries both civilian and military complexity on the same form.
Griffin & Johnson proudly delivers Military & Veteran Tax Preparation in Virginia to individuals and families throughout Newport News, including employees of Newport News Shipbuilding, Fort Eustis, and businesses across Oyster Point, City Center, and Patrick Henry. We've done this before. We'll get yours right.
Newport News Shipbuilding employs tens of thousands of workers - engineers, welders, electricians, and defense professionals - making it the single largest driver of employment in the Newport News economy. Its workforce is one of the most concentrated groups of defense-adjacent taxpayers in Virginia.
The shipyard has been building and repairing U.S. Navy vessels since 1886. Every aircraft carrier in the U.S. fleet has been built or overhauled here. It is not just a business - it is a civic institution that shapes the tax landscape of an entire region.
Many Newport News Shipbuilding employees also serve in the Guard or Reserve. That combination - civilian defense contractor income alongside military activation pay, SCRA protections, and combat zone rules - creates exactly the kind of return that requires a specialist.
Every Branch. Every Rank.
Every Stage of Service.
Griffin & Johnson provides Military & Veteran Tax Preparation in Virginia for clients from every branch - active duty, reserve component, National Guard, retired, and veterans - across Northern Virginia and Hampton Roads. No branch-specific knowledge gap. No rank that falls outside our experience. Every situation handled with the same depth of preparation.
Army
Active duty, Army Reserve, Army National Guard, and Army veterans at all ranks and career stages - including OCONUS assignments and multi-state Guard situations.
Air Force & Space Force
Active duty, Air Force Reserve, Air National Guard, and veterans - including the Space Force community and the unique assignment patterns of the Air Force world.
Navy
Active duty, Navy Reserve, and Navy veterans - including those with sea duty histories, OCONUS assignment complexity, and the specific allowances of the naval service.
Marine Corps
Active duty, Marine Corps Reserve, and Marine veterans across all MOS backgrounds and service lengths - including the rapid deployment patterns that create complex multi-state situations.
Coast Guard
Active duty, Coast Guard Reserve, and Coast Guard veterans - including those with maritime duty histories and the specific allowance and assignment patterns of the Coast Guard service.
DOD Civilians & Contractors
Department of Defense civilian employees and defense contractors with complex income situations, OCONUS employment, and the multi-state filing obligations that come with federal employment in the defense community.
Your Service Deserves
Precision.
Submit your intake form and we'll reach out within one business day. Our Military & Veteran Tax Preparation in Virginia means no generic tax advice applied to a military situation. No civilian rules used where military exceptions apply. Every rule that affects your return - applied correctly, the first time.