Includable Income

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

Includable 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 2011, advise the taxpayer to contact the local accounting and finance or payroll office for an explanation.