Miscellaneous

Payment for service outside a designated combat zone is not excluded from income unless the pay is hostile fire/imminent danger pay for serving an area in direct support of military operations in the combat zone. The Department of Defense certifies areas that meet these requirements. Hostile fire/imminent danger pay received for service in a non-certified area is taxable. Generally, hostile fire/imminent danger pay is included on Forms W-2 for persons who do not qualify for the exclusion and not included on Forms W-2 for persons who do qualify for the exclusion.

No. Members of the U.S. Armed Forces who perform military service in an area outside a combat zone qualify for the suspension of time provisions if their service is in direct support of military operations in the combat zone, and they receive special pay for duty subject to hostile fire or imminent danger as certified by the Department of Defense. The Military Family Tax Relief Act of 2003 further applied the deadline extension provisions to those serving in a Contingency Operation, as designated by the Secretary of Defense.

No. Other than military personnel, the only individuals working in a combat zone that are entitled to the deadline extension provisions are those serving in support of the U.S. Armed Forces.

Military pay attributable to your active service in the combat zone that is excluded from gross income will not appear on your Form W-2 in the box marked "Wages, tips, other compensation.
" However, military pay for such service is subject to Social Security and Medicare taxes and will appear on your Form W-2 in the boxes marked "Social security wages" and "Medicare wages and tips."
If you believe you are entitled to the military pay exclusion, but it is not reflected on your W-2, ask your service branch to issue a corrected Form W-2.

Some employers voluntarily agree to continue paying full wages to their employees who are called to active duty. This is commonly referred to as differential pay. Differential pay is any payment made by an employer to an individual for a period during which the individual is performing service in the uniformed services while on active duty for a period of more than 30 days and represents all or a portion of the wages the individual would have received from the employer if the individual were performing services for the employer.

These amounts are included in wages on Line 7 of Form 1040.

These amounts are included in wages on Line 7 of Form 1040.

A mortgage loan backed by the Veteran's Administration requires very low or no down payments and has less requirements for qualification. Generally, the interest rates are lower than what is being offered in the marketplace. Members of the U.S. Armed Forces are eligible for the loans under certain qualifying conditions. Contact the local Veteran's Administration office for more information.

Yes. Your Marine reserve training compensation are taxable and reportable on IRS Form 1040 page 1 as wages.