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The following information is provided for servicemembers by the Internal Revenue Service:

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.

Included ItemsThese items are included in gross income, unless the pay is for service in a combat zone.

Basic pay:

Active dutyAttendance at a designated service schoolBack wagesCONUS COLADrillsReserve trainingTraining dutySpecial pay:

Aviation career incentivesCareer sea

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 officers

Nuclear-qualified officers

Optometry

Pharmacy

Special duty assignment pay

Veterinarian

Bonuses:

Career statusEnlistment

Officer

Overseas extension

Reenlistment

Other payments:

Accrued leaveHigh deployment per diemPersonal money allowances paid to high-ranking officersStudent loan repayment from programs such as the Department of Defense Educational Loan Repayment Program when year’s service (requirement) is not attributable to a combat zoneIncentive pay:

SubmarineFlightHazardous dutyHigh altitude/Low altitude (HALO)Excluded ItemsThese items are not included in gross income, but may have to be shown on a tax return

Living allowances:

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 BAHBAS (Basic Allowance for Subsistence)Housing and cost-of-living allowances abroad whether paid by the U.S. Government or by a foreign governmentOHA (Overseas Housing Allowance)Moving allowances:

DislocationMilitary base realignment and closure benefitMove-in housingMoving household and personal itemsMoving trailers or mobile homesStorageTemporary lodging and temporary lodging expensesTravel allowances:

Annual round trip for dependent studentsLeave between consecutive overseas toursReassignment in a dependent restricted statusTransportation for you or your dependents during ship overhaul or inactivationPer diemCombat zone pay:

Compensation for active service while in a combat zone or a qualified hazardous duty area. (Note: Limited amount for officers).Family allowances:

Certain educational expenses for dependentsEmergenciesEvacuation to a place of safetySeparationDeath allowances:

Burial servicesDeath gratuity payments to eligible survivorsTravel of dependents to burial siteOther payments:

Defense counselingDisability, including payments received for injuries incurred as a direct resultof a terrorist or military actionGroup-term life insuranceProfessional educationROTC educational and subsistence allowancesSurvivor and retirement protection plan premiumsUniform allowancesUniforms furnished to enlisted personnelIn-kind military benefits:

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