Deployed military and taxes?

Hello, I'm a high school junior considering the military as a potential path after graduation. I'm curious about how payment works when you're deployed - do you still have to pay taxes? Can anyone shed light on this?

Yes, even when deployed, military members are required to pay income taxes. However, certain pay and allowances may be tax-exempt if you are serving in a designated combat zone or qualified hazardous duty area.

For example, the Combat Zone Tax Exclusion (CZTE) provision states that if you are an enlisted member, warrant officer, or limited duty officer, you can exclude your military pay received while in a combat zone from your taxable income. This means you won't pay taxes on this specific income.

For commissioned officers, there's a cap on the amount of pay subject to the tax exclusion. The maximum amount of combat pay they may exclude cannot exceed the highest rate of enlisted pay plus any hostile fire or imminent danger pay they might receive.

It's important to note that these exclusions and benefits will not automatically be applied. Each year, you'll have to file an income tax return that accurately portrays your income, including which portions are subject to any exclusions.

While overseas, members of the military often receive additional pay, such as Imminent Danger Pay or Family Separation Allowance. Some of these pays may be taxable or partially taxable, and some may be fully tax-exempt, depending on your situation.

That said, tax issues can be very complex, and it's crucial to consult an expert or a tax professional when dealing with them, especially in unique situations like military deployment. Make sure to take advantage of tax assistance services provided by the military, like the Volunteer Income Tax Assistance program, which offers tax advice and preparation free of charge to service members and their families.