The Servicemembers Civil Relief Act

While protecting our country, some service members may have trouble meeting their financial obligations for a variety of reasons such as an unexpected activation, deployment, injury, or extension of service. The Servicemembers' Civil Relief Act (SCRA) was enacted in 2003 to offer these service members and their families special protections and benefits.

The SCRA covers all active duty service members, Reservists, and the members of the National Guard while on active duty. The protection begins on the date of entering active duty and generally ends 30 to 90 days after the date when the service member is discharged from active duty.

Under the Act, service members are permitted to defer (delay) payment of state and federal income taxes due before or during military service if the service member's ability to pay those taxes is materially impacted by his or her service.

 

Tax Deferment

Service members are permitted to defer (delay) payment of state and federal income taxes due before or during military service if the service member's ability to pay those taxes is materially impacted by his or her service. The deferment may last up to 180 days from the date the service member leaves military service. No interest or penalty may be added to the amount due for failure to pay during the period of deferment.

Service members must notify the Massachusetts Department of Revenue or the Internal Revenue service to request a deferment. For more information about Massachusetts taxes consult the Department of Revenue's website for Military Personnel . For more information about federal taxes consult the IRS's Tax Information for Members of the Military.