Hey everyone, hope y'all are doing well. So, I'm seriously considering joining the military after high school, but I'm a bit confused about something. I've seen a few things online about a 'military deployment tax exemption.' Can someone explain what that is? And is there any difference between being deployed at sea and on land? Any help is appreciated!
Hi there! The military deployment tax exemption you're referring to is likely the combat zone tax exclusion, which is provided by the Internal Revenue Service (IRS) to U.S. military personnel. The concept is that if you are serving in a combat zone for any part of a month, all your military pay received for military service that month is excluded from gross income.
In other words, your pay for that month is not subject to federal income tax. For commissioned officers, the exclusion is capped at the highest enlisted pay, plus any hostile fire or imminent danger pay received.
For this tax exclusion, there is no differentiation between being deployed at sea or on land, as it mostly revolves around whether you are serving in an IRS-designated combat zone or in direct support of military operations in that zone.
Plus, to add more to the benefits, this also extends to reenlistment bonuses, pay for accrued leave, and other compensation. These allowances also benefit from the tax exclusion.
Remember, it's best to consult with a tax advisor or use a tax service familiar with military tax issues to ensure that you're receiving all of the tax benefits available!
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