Military Deployment Financials

Hey there, rising Junior here weighing out some pathways for post-high school life. I've been leaning a bit towards the military, but not sure how the fiscal side of it works particularly when you are deployed. Can anyone guide me through the process on how to calculate compensation during deployment?

Hello! I’d be happy to guide you through some details about military compensation during deployment. The first thing to know is that military compensation involves a combination of a basic pay, allowances, and special pays or incentives.

Basic pay is determined based on your rank and service length. In each military branch (Army, Navy, Air Force, Marines), each enlisted rank, warrant officer rank, and officer rank corresponds to a pay grade. Your pay increases as you advance in rank and years of service.

On top of the basic pay, there are various allowances. One of the most significant is the Basic Allowance for Housing (BAH) which varies based on location, rank, and if you have dependents. BAH is meant to cover the cost of housing, so it changes for each duty location. There is also Basic Allowance for Subsistence (BAS) to offset the cost of meals.

Regarding deployment, it introduces some additional factors. You may be eligible for Imminent Danger Pay (IDP) or Hostile Fire Pay (HFP) which are added to the basic pay if you're deployed to an area that qualifies. There's also a Family Separation Allowance if you're away from your dependents for more than 30 days due to military orders.

It's important to note that during deployment many of your expenses can be reduced (housing, meals, etc) as they're covered by the military. Plus, some deployment pay may not be subject to federal income tax, thanks to the Combat Zone Tax Exclusion.

The Defense Finance and Accounting Service (DFAS) offers online military pay tables and a military pay calculator that can provide estimates based on your specific situation. You just need to input your details such as rank, years of service, and location to get an estimate. This can give you a clear idea about how much you would be compensated during a military deployment. Keep in mind that every situation can be unique and these resources provide estimates, not guaranteed figures.

Lastly, it's a great idea to research these specifics and understand the complete financial picture before making a decision. The fiscal side is just one of many factors to consider when thinking about a military career. I hope this helps!