Is active duty pay taxable?

Base pay is taxable unless you are actively serving in a designated tax-free combat zone. You’ll pay federal income tax, Social Security, Medicare, and state taxes on your base pay. Some states do not tax military pay, while a few others won’t tax it unless you are stationed within the state.

Where do I find my active duty pay deduction?

You can see your deductions and allotments listed on your Leave and Earnings Statement, or LES.

How much does active duty soldiers make?

All soldiers on active duty receive a basic pay. The Army ranks its soldiers from E1 through E6. E1s with less than two years experience earn an annual salary of $19,660. The wage is slightly lower for the first four months of service.

How much do you get paid as an active duty soldier?

As an active duty Army Soldier or activated Army Reserve Soldier you will earn Army Basic Pay. This pay accounts for just a portion of your total income each month. Army Basic Pay scale as a Soldier depends on how long you’ve been in the Army and your rank.

Do you have to include military pay in adjusted gross income?

You must include your military wages, by using Form 140, you may subtract the pay received for active duty military service; up to the extent it is included in your federal adjusted gross income. The active duty military pay can be excluded from the resident return by following these steps in the program:

Do you pay Arizona taxes on active duty military pay?

You are an active duty member of the United States armed forces. Your only income for the taxable year is pay received for active duty military service. There was no Arizona tax withheld from your active duty military pay.

What does it mean when military pay is not taxable?

Military pay can be confusing. There are a lot of different rules regarding military pay and which benefits, bonuses, and special pays are taxable and which are not. This series of articles will focus on clearing up some of the confusion. By non-taxable, we mean not included in gross income.

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