Deployment Benefits

They don’t end with tax-free combat pay.                                                                

by Rosemary O’Brien

While it can be difficult to endure the separation of a deployment, many organizations have put systems in place to assist these service members and their families financially.  The IRS is one example of an organization that wants to make life a little easier for service members deployed to combat zones, as well as their families back home.  Bob Wenzel, former Acting Commissioner of the IRS, expressed the IRS’s support of our deployed troops.

"At this important time [during deployment], our dedicated military personnel in combat zones should not be worried about tax issues," said Commissioner Wenzel.  "We want each of them to receive all of the tax benefits that they are entitled to.  We want all of our servicemen and servicewomen – and their families – to know that we are here to help."

Here are some of the highlights of benefits from the IRS as well as a few others available to service members deployed to combat zones, and their families.

Excludable Income: Enlisted service members, up to and including commissioned warrant officers, may exclude all of their military pay received for service in a combat zone.  Commissioned officers are able to exclude the amount equal to their highest enlisted pay plus any danger pay received.

Extension on Filing of Taxes: Service members deployed to a combat zone can file their federal tax returns after the April 15 deadline.  The extension is 180 days plus the number of days the service member was deployed from January 1 to April 15th of that tax year.  According to the IRS, the extension begins the day the soldier leaves the combat zone.  No interest is charged on the amount owed to the IRS by service members who use this extension.

Home Sales: Service members on official extended duty may suspend the ownership-and-use period currently required before the sale of a residence.  This suspension is in effect while the service member is stationed at least 50 miles from the subject residence or while living in government housing for more than 90 days or for an indefinite period of time.  The suspension is elective and can be used for only one property at a time.

Travel Deduction: Members of the National Guard and Reserves who stay overnight more than 100 miles away from home while in service may deduct unreimbursed travel expenses.  This is limited to the rates allowed for federal employees.

Entertainment Discounts: Movie theaters, amusement parks and some restaurants give discounts to the military on a regular basis.  All you have to do is show your military ID card.

Credit Cards: According to Military Money Magazine, service members receive lower interest rates on credit card balances while deployed.  Notify your bank or creditor in writing to get the lower rate.

College Tuition Rates: Many states allow members of the military and their spouses to pay in-state tuition even if their home of record is in a different state.  Contact individual schools and ask about their policies.

If you are not sure, ask.  Unfortunately, some organizations do not think of giving the military a break.  You have to let them know we are out there.