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Armed Forces Tax Information

How will my military pay for active service in the U.S. Armed Forces in a combat zone appear on my Form W-2, ?

Asked Tuesday, December 27, 2011 by an anonymous user
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.
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Armed Forces Tax Information

What is military differential pay?

Asked Tuesday, December 27, 2011 by an anonymous user
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.
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Armed Forces Tax Information

What is the tax ramifications of military differential pay?

Asked Tuesday, December 27, 2011 by an anonymous user
Military differential pay is wages and should be reported in box 1 of Form W-2 as wages for income tax purposes. Military differential pay is includible as wages for income tax purposes on Form W-2, but is excludable from social security and Medicare taxes (FICA).
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Armed Forces Tax Information

How does a person who receives military differential pay report this on the federal 1040 income tax return?

Asked Tuesday, December 27, 2011 by an anonymous user
These amounts are included in wages on Line 7 of Form 1040.
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Armed Forces Tax Information

How does a person who receives military differential pay report this on the federal 1040 income tax return?

Asked Tuesday, December 27, 2011 by an anonymous user
These amounts are included in wages on Line 7 of Form 1040.
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Armed Forces Tax Information

Are the costs of my Marine gold braids deductible?

Asked Wednesday, November 22, 2000 by an anonymous user
Yes. The costs of your gold braids, rank insignia, collar devices or altering your uniform are deductible as a miscellaneous itemized deduction subject to the AGI 2% limitation on IRS Schedule A.
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Armed Forces Tax Information

Are the costs of cleaning my uniform while on my Navy recruitment trips deductible?

Asked Wednesday, November 22, 2000 by an anonymous user
Yes. The costs of cleaning your uniform that is in excess of any reimbursement or clothing allowance are deductible. It can be claimed on IRS Schedule A as a miscellaneous itemized deduction subject to the 2% AGI limitation.
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Armed Forces Tax Information

Are my payments for Marine accrued leave taxable?

Asked Wednesday, November 22, 2000 by an anonymous user
Yes. Your payments for your Armed Forces Marine accrued leave are taxable and reportable as wages on IRS Form 1040 page 1.
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Armed Forces Tax Information

Are my Marine reserve training wages taxable?

Asked Wednesday, November 22, 2000 by an anonymous user
Yes. Your Marine reserve training compensation are taxable and reportable on IRS Form 1040 page 1 as wages.
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