Feb 1 2004
Members of the Armed Forces receive many different types of pay and allowances. Some are included in gross income while others are excluded from gross income. Included items are subject to tax and must be reported on your tax return. Excluded items are not subject to tax, but may have to be shown on your tax return.For information on the exclusion of pay for service in a combat zone and other tax benefits for combat zone participants, see Combat Zone Exclusion and Extension of Deadline, later.
Included Items
Base Pay
- Active Duty
- Attendance at a designated service school
- Back wages
- Drills
- Reserve Training
- Training Duty
- Aviation career incentives
- Career Sea pay
- Diving duty
- Foreign Duty (outside the 48 contiguous states and the District of Columbia)
- Foreign language proficiency
- Hardship duty
- Hostile fire or imminent danger
- Medical and dental officer special pay
- Nuclear-qualified officers pay
- Optometry special pay
- Overseas extension incentive pay
- Pharmacy special pay
- Special duty assignment pay
- Veterinarian special pay
- Career Status
- Enlistment
- Officer
- Overseas Extension
- Re-enlistment
- Accured leave
- High deployment per diem
- Personal money allowances paid to high-ranking officers
- Student loan repayment programs when year's service is not attributed to a combat zone
- CONUS COLA
- Submarine
- Flight
- Hazardous duty
- High altitude/low attitude (HALO)
Excluded Items
The exclusion for certain items applies whether the item is furnished in kind or is a reimbursement or allowance. There is no exclusion for the personal use of a government-provided vehicle.
Living
- BAH (Basic Allowance for Housing). You can deduct mortgage interest and real estate taxes on your home even if you pay these expenses with your BAH
- BAS (Basic Allowance for Subsistence)
- Housing and cost-of-living allowances, abroad whether paid by the U.S. allowances dependents Government or by a foreign government
- OHA (Overseas Housing Allowance)
- Dislocation
- Military base realignment and closure benefit paid after Nov 11, 2003
- Move-in housing
- Moving household and personal items
- Moving trailers or mobile homes
- Storage
- Temporary lodging and associated expenses
- Annual round trip for dependent students
- Leave between consecutive overseas tours
- Reassignment in a dependent-restricted status
- Transportation for you or your dependents during ship overhaul or inactivation
- Per diem
- Compensation for active service while in a combat zone or a qualified hazardous duty area (Note: Limited amount for officers)
- Certain educational expenses for dependents
- Emergencies
- Evacuation to a place of safety
- Family Separation Allowance (FSA)
- Burial Services
- Death gratuity payments to eligible survivors
- Travel of dependents to burial site
- Defense counseling
- Disability, including payments received personal items for injuries incurred as a direct result of a terrorist or military action
- Group-term life insurance
- Professional education
- ROTC educational and subsistence allowance
- Survivor and retirement protection plan premiums
- Uniform allowances
- Uniforms furnished to enlisted personnel
- Dependent-care assistance program
- Legal assistance
- Medical/dental care
- Commissary/exchange discounts
- Space-available travel on government aircraft
