Qualifications for the Combat Zone Exclusion

A member of the US armed forces is allowed to fully deduct any pay he/she receives for active duty in a combat zone. A combat zone is decreed by an executive order that comes directly from the president of the US. This area is where the US armed forces are about to engage with the enemy or already have done so.

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Filing a Return for a Spouse Due to Injury or Unavailability

If you are a member of the US armed forces and you are stationed outside the US or an injury to your body incapacitates you making it impossible for you to file your tax return, you can have a spouse sign the tax return for you and send it in...more

Includible and Excludible Items

In the eyes of the IRS, the US armed forces includes any person serving in the Army, Navy, Air Force, and the Coast Guard. They can be commissioned officers and enlisted personnel in the regular and reserve units. Due to the fact that many of these personnel receive different types of pays and allowances, IRS has separated the items that can be reported in their gross income into two categories, includible Items and Excludible Items...more

Deducting Moving Expenses for Members of the Armed Forces

To deduct moving expenses on your tax return most people have to meet certain guidelines. The same is not true for an enlisted member of the armed forces. If they move because of a permanent change of station then the regular guidelines don’t apply...more

Combat Zone Forgiveness

One of the hardest things to deal with is the death of a loved one who died serving his/her country bravely. To make this burden less felt by those who survive these individuals, IRS forgives the tax liability owed by these brave souls. If the member of the armed forces dies from injuries or wounds or diseases received while serving in the combat zone then they qualify for the combat zone forgiveness.

Extension of Deadline

Due to circumstances that can rise when the US armed forces enter a combat zone, IRS grants taxpayers that are in the combat zone or directly supporting the individuals in the combat zone or are receiving special military pay for imminent danger and hostile fire an extension of deadline for taking care of their tax matters.

Terroristic or Military Action Forgiveness

For the year before and the year in which the injury or wound was incurred and resulted in the death of a member of the armed forces or a US government employee because of a terroristic or military action against the US government or it’s allies, the tax liability of the deceased individual is forgiven.

Veteran's Benefits

Tax code is very clear about Veteran’s benefits collected by taxpayers who have served their country in the army, navy, air force, or coast guard. As long as the benefits are paid out by the Department of Veteran Affairs, they are tax-free and you don’t have to include them in your gross income.

Deductible Work Related-Expenses for Military Personnel

IRS is very clear on tax treatment of personal expenses. They are not tax deductible even if they are work-related, like eating out on business trips. The only way 50% of that dinner is tax deductible is if you have a client with you and the express purpose of that dinner is to discuss business. The same does not hold true for a member of the armed forces.

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