Do i have to pay taxes on tax free money over seas on military deployment?

Question

I know they take taxes out of the checks but then you get a check for the taxes that was taken out.I just want to know if i have to report all of that and repay the taxes on it when i return next year

Answer 1

If you're serving in a designated combat zone, your military pay is not taxable. The military pay paid in a designated combat zone is not reported in box 1 of your Form W-2 and no taxes are withheld on that income.

If you were serving in a designated combat zone and any of that pay was included in your Form W-2 in box 1, contact your local Accounting and Finance Office, Mil Pay Section, and have that corrected BEFORE you file your tax return. They'll provide you a corrected W-2. You'll get the erroneously withheld taxes back when you file your tax return.

If you are simply deployed overseas but are not in a combat zone, your base pay and other taxable pay and allowances are fully taxable. You do NOT get a tax exemption for simply being deployed or posted overseas.

Answer 2

No. My hubby is a soldier and had a tax free bonus and, combat pay for last year. Your W-2 will give you all the correct info for you income.

Answer 3

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Answer 4

The same publication 3 will cover that issue and all of your other questions. Some of which you may not have given any thought yet.
http://www.irs.gov/pub/irs-pdf/p3.pdf

Answer 5

its the best for people that join the military they don't pay **** in the state & that what i like about income taxes