Types of Income

Members of the Armed Forces receive many different types of pay and allowances. Some are includable in gross income while others are excludable from gross income.

• Includable items are subject to tax and must be reported on the tax return
• Excludable items are not subject to tax, but may have to be shown on the tax return

Refer to the Volunteer Resource Guide (Tab D) for detailed lists of these types of military pay and to determine if they are included in gross income, or excluded.