SPRINGFIELD, IL (02/04/2012)(readMedia)-- As servicemembers start to receive their W2's in the mail, now is the time to prepare to file your 2011 tax returns and learn what opportunities are available for military members.

"There are many programs at the state and federal levels providing tax credits for members of our military in recognition of their sacrifices for the nation," said Lt. Col. Tammy Duckworth of Hoffman Estates, Deputy of Human Resources for the Illinois Army National Guard. "It is important that our troops are aware of these benefits and not leave any money on the table when those dollars can be helpful to our families and employers."

If a servicemember is eligible under the Military OneSource program, he/she can complete, save and file their 2011 federal taxes and up to three state tax returns online for free with the H&R Block At Home® tool. To access this free service, use the Military OneSource H&R Block At Home® link. The first step is to log in to Military OneSource (new users will need to create a Military OneSource account). From there, users will be directed to a page with additional information on tax preparation, including a link to the Military OneSource H&R Block At Home® service.

In addition to filing taxes for free, servicemembers can get support from trained tax consultants through Military OneSource. Servicemembers and families can call 1-800-342-9647 and ask to speak with a Military OneSource tax consultant seven days a week from 7 a.m. to 11 p.m.

Federal tax benefits for hiring many veterans are available to business owners in any state. The federal benefits are available under the Work Opportunity Tax Credit (WOTC) Program. There is up to a $2,400 credit if there is:

• a veteran who is a member of a family that has received food stamps for at least three consecutive months in the 15 months prior to the date of hire

• a person with disability who is participating in a vocational rehabilitation program through U.S. Veteran's Administration

There is also a WOTC credit of up to $4,800 for veterans entitled to compensation for a service-connected disability who:

• were hired within one year of having been discharged, or released from activity duty

• has been unemployed for any six of the last 12 months

Employers hiring multiple WOTC qualified employees can make a significant dent in their federal income taxes. These benefits are explained and claimed on IRS Form 5884.

Currently, 26 states offer partial or total exclusions, from state-level taxes for combat and/or other military compensation paid to servicemembers. There are five states offering outright tax exemption for military pay, including Illinois.

Combat pay received by members of the military serving in Afghanistan, Iraq and other combat zone localities is usually exempt from tax. But under a special rule, servicemembers can choose to count all of this income when he/she figures the Earned Income Tax Credit. In many cases, making this choice will enable the servicemember to claim the credit, or if you are already eligible, claim a larger credit.

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Moline, Illinois - Senator Chuck Grassley (R-IA) and Congressmen Bobby Schilling (IL-17), Bruce Braley (IA-01), and Dave Loebsack (IA-02) released the following statements after hosting a forum in support of preserving and strengthening the Rock Island Arsenal and the Quad Cities' defense manufacturing capabilities:

Grassley said: "The Rock Island Arsenal has proven over decades its ability to meet its mission in a cost effective way, and any new effort to restructure operations for cost savings need to demonstrate a commitment to real savings and provide for a legitimate process to correct recommendations that don't meet that basic test.  The last time a cost-savings effort was made with BRAC, the Arsenal in Rock Island was hurt unfairly.  A function was moved from Rock Island Arsenal to Michigan even though it cost more money, short and long term, to do it that way.  The commission staff knew the cost savings wasn't there, misrepresented the facts in public testimony before the commission, and failed to fix the flawed recommendation.  Neither the military nor the taxpayers were served, as a result.  Every effort needs to be made to establish a fair process."

Schilling said: "Many thanks to those from both sides of the river and both sides of the aisle for taking the time today to join us in strong support of the Rock Island Arsenal and our entire area's remarkable defense manufacturing.  It is truly an honor to represent the hardworking men and women of the Arsenal.  Today's discussion was a great step early in this process, and I look forward to continuing to work as a close, united group in proactively promoting our region's significance to our national defense and security needs."

Braley said: "Today's turnout shows how critical an economic engine the Arsenal is for the Quad Cities and how vital the Arsenal is for our national defense.  Time and time again, the workers at the Arsenal have stepped up to produce the equipment and supplies our troops need when no one else has been able to.  In Iraq, Afghanistan and beyond, Arsenal employees have answered the call to help make America stronger and safer.  I'm committed to working with friends from across the river and across the aisle to keep the Arsenal a strong and productive part of the Quad Cities for decades to come."

Loebsack said: "I was pleased to see all of the folks who came together today to stand united in support of the Rock Island Arsenal.  Its highly dedicated, highly talented workforce is central to defending our nation and protecting our troops.  The over 8,000 people that are employed by the Arsenal are also critical to the Quad Cities economy.  The best way that we will all be able to strengthen the Arsenal's future during these changing times is to rally around it together and work as one group.  We all must pull together as 'Team Rock Island' to ensure the longevity of the Arsenal."

Following Defense Secretary Leon Panetta's announcement last week regarding efforts by the Department of Defense in the Pentagon's Fiscal Year 2013 budget to achieve cuts included in America's new defense strategy, Senator Grassley and the Congressmen are working with the entire Quad Cities region to come together in support of the Rock Island Arsenal and the Quad Cities' defense manufacturing capabilities.  The FY2013 budget is the first budget that will begin addressing the $487 billion cut to defense spending over the next decade.  This budget does not reflect potential triggered 'sequestration' cuts, which would add an additional $500 billion cut starting in January 2013.  

The Secretary's announcement included mention of programs vital to the Quad Cities, including industrial base skills.  Per the DOD's Defense Priorities and Choices, the planned budget states that it will "sustain, where possible, these segments of the industrial base."  It takes into account the "key skills in the design and manufacture of military systems that cannot be duplicated elsewhere in the economy or regenerated quickly.

The Congressmen, and their guest Senator Grassley, are part of the bi-state, bipartisan delegation that represents the Rock Island Arsenal, and have led the charge to grow workload and jobs at the Rock Island Arsenal.  The Arsenal is a major jobs engine in the Quad Cities and - with approximately 8,600 workers living on both sides of the Mississippi River - its largest employer.  Over 35 private-sector companies have leases at the Arsenal, which also houses approximately 50 Department of Defense organizations. Further, its business supports over 14,000 additional jobs in the surrounding area.  Schilling and Loebsack both serve on the House Armed Services Committee, and successfully inserted language into the FY2012 National Defense Authorization Act (NDAA) to permanently lift the cap on the number of public-private partnerships that arsenals are able to enter into.  Removing that cap increases the Arsenal's ability to increase its workload, grow their local economies, and strengthen our domestic manufacturing base.   Senator Grassley and the Congressmen look forward to continuing to work with the many local leaders and their representatives who have expressed their support for the Arsenal and local defense manufacturing to promote our region's value to America's overarching national defense strategy.

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Moline, Illinois - Congressman Bobby Schilling (IL-17) released the following statement upon the announcement that the Rock Island Arsenal has been selected FEMA's Regional Operations Center for Region V, which covers Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin:

"I have long said that the Rock Island Arsenal is a national treasure, and I couldn't be more pleased by FEMA's announcement today that the Arsenal was selected to host the Regional Operations Center for our area.  The Arsenal's central location and existing capabilities make it the ideal selection for FEMA's new office.  I look forward to working with FEMA in this new capacity, and to seeing the Arsenal fill a vital role in both America's national defense and homeland security strategies."

Since March 1, 2003, the Federal Emergency Management Agency (FEMA) has been part of the United States Department of Homeland Security.  Schilling has worked to promote the Arsenal as centrally located and as home to the resources FEMA's Regional Operations Centers require.

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