Taxes For Dummies

Chapter 30

Ten (Plus One) Tax Tips for Military Families

IN THIS CHAPTER

Getting tax guidance if you’re in the military

Finding ways to reduce your taxes through military service tax breaks

Members of the military and their families have always received special consideration from all branches of the U.S. government, and tax relief is no exception. This chapter highlights important elements of tax relief available to military families together with some other factors you may want to consider if you or your spouse is a member of the armed forces (including the reserves).

This chapter only provides some of the basics. If you or your spouse is in the military, you need to explore further. You can find additional information regarding paying income tax while you’re in the military in IRS Publication 3 (Armed Forces Tax Guide), which is available online at www.irs.gov or by phone by calling 800-829-3676.

Some Military Wages May Be Tax-Exempt

In fact, if you’re serving in a combat zone or a qualified hazardous duty area, all your compensation from active duty while you’re stationed there is exempt from taxation unless you’re a commissioned officer. Commissioned officers’ pay earned while in a combat zone or a qualified hazardous duty area may be partially taxed. In addition, if you’re ...