Hey folks, just trying to figure out my options post-high school. Lately, I've been considering the military. I was wondering, does anyone know if military pay gets taxed while deployed? I can't seem to find a straightforward answer online. Any help would be appreciated, thanks!
Hello! Yes, military pay is generally subject to taxation. However, there's a key exception called the Combat Zone Tax Exclusion. According to this provision, if you are an enlisted member, warrant officer, or commissioned warrant officer and you serve in a designated combat zone, your military pay received during your service there is excluded from taxable income. Commissioned officers also qualify for this exclusion, but there's a limit to the amount that can be excluded.
It's important to note that the IRS determines which areas qualify as combat zones and publicizes this information accordingly. Stay up-to-date on these regulations and always consult with a tax professional or military finance officer to understand your specific case. Be aware this is a general guide, and tax laws can change, so getting professional advice is crucial.
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