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

Military Income

Combat Zone Exclusion

Qualifying Military Income

Members of the U.S. Armed Forces who serve in a combat zone may exclude military pay from their taxable income.

A member of the Armed Forces does not have to receive the qualified pay while in a combat zone, in a hospital, or in the same year they served in a combat zone. However, the entitlement to the pay must have fully accrued in a month during which they served in the combat zone or were hospitalized as a result of wounds, disease, or injury incurred while serving in the combat zone.