Military service comes with unique tax benefits and considerations. From combat pay exclusions to special deadlines, here's what service members need to know.

Tax Guide for Military Members

Combat Pay Exclusion

Combat pay is generally excluded from federal income tax. This exclusion can also affect EITC calculations — you may elect to include combat pay in earned income for EITC purposes if it increases your credit.

Servicemembers Civil Relief Act (SCRA)

May allow you to use your home state for tax purposes even while stationed elsewhere
Protects spouses from paying income tax in the state where they live due to the servicemember's orders

Moving Expense Deduction

Military members who move due to a permanent change of station (PCS) can deduct unreimbursed moving expenses.

Extension of Tax Deadlines

Service members in combat zones receive automatic 180-day extensions
Extension also applies to spouses

Special Retirement Benefits

Military retirement pay is generally taxable
Disability retirement pay may be excluded

Veterans Benefits

VA disability benefits are not taxable
Education benefits under GI Bill are not taxable

VITA (Volunteer Income Tax Assistance)

Free tax preparation is available at most military bases through VITA.

Serving or recently separated? We honor your service and understand your unique tax situation.

Tax Guide for Military Members and Veterans