Enlisted persons and warrant officers—Combat pay is nontaxable, and you should report zero for combat pay or special combat pay. Commissioned officers—Combat pay in excess of the highest enlisted person’s pay (plus imminent danger/hostile fire pay) is taxable.
What is not taxable combat pay?
You do not have to report your nontaxable pay as a member of the Armed Forces. Examples of nontaxable military pay are combat pay, the Basic Allowance for Housing (BAH), and the Basic Allowance for Subsistence (BAS).
How much extra is combat pay?
The military provides bonus pay for dangerous work As of 2018, a military member assigned to or deployed to a combat zone receives bonus combat pay (officially called “hostile fire” or “imminent danger pay”), at a rate of $225 per month. It is in addition to their regular pay rate.
Do you pay federal income tax on combat pay?
Combat pay is a bonus paid to military service personnel who are serving in regions that are designated hazard zones. The additional pay is generally not subject to federal income tax, although …
Are there any tax exclusions for military pay?
Provisions Excludable Income – You can exclude the following income related to military compensation: Basic Pay – All for every month you are present in a combat zone. Non-Excludable Taxes – Military pay for earned while in a combat zone is subject to Social Security and Medicare taxes and will appear on your W-2.
How much does the US military pay for combat?
As of 2018, a military member assigned to or deployed to a combat zone receives bonus combat pay (officially called “hostile fire” or “imminent danger pay”), at a rate of $225 per month.
Are there tax advantages to working in a combat zone?
It is in addition to their regular pay rate. Being assigned to or working in a combat zone also triggers a tax advantage in some locations. Congress and/or the president can designate combat zones as “Tax Exempt” areas. Earnings received while in these combat zones are not subject to federal tax withholding.
