Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Military Income

Includible and Excludible Income

Includible Income

The types of military pay listed in the Volunteer Resource Guide, Income tab are included in gross income, unless the pay is for service in a combat zone or in a qualified hazardous duty area.

Includible military income is generally the amount shown in box 1 of Form W-2, Wage and Tax Statement, and reported on line 7 of Form 1040.


If the amount shown in box 1 of Form W-2 differs from the last Leave and Earnings Statement for the current tax year, advise the taxpayer to contact the local accounting and finance or payroll office for an explanation.

Form W-2

Form W-2