do military people stationed overseas have to claim there pay on there taxes or are they exempt?

Answer 1

My state, California, exempts the salaries of enlisted military from state tax and gives a generous exemption to officers. A good deal of military pay is tax free all around.

Answer 2

Military personnel receive a cocktail of payments, some of which are taxed and others which are not.

Basic pay and most pro pays and bonuses are fully taxable at the Federal level regardless of where they are stationed unless they are received in a declared combat zone. (Yes, some folks time re-enlistment bonuses to be paid in combat zones and therefore avoid tax.)

Housing and subsistence (meals) allowances are not taxable at the Federal or State level regardless of where they are paid. These allowances can contribute a significant portion of a GI's earnings and have a significant tax advantage for military personnel, roughly equivalent to a 10% increase in total pay if they were taxable.

Each State with an income tax has their own rules for the taxability of military pay of their citizens. GIs maintain their legal domicile regardless of where they are stationed and will pay State taxes regardless of where they are stationed, based upon State law. Some exempt some or all military pay earned while stationed outside the state while others tax it fully. Regardless of how the State taxes military pay, payments received in a combat zone are exempt from tax.

Answer 3

Still have to pay federal taxes but many states won't charge state tax on military pay that is earned outside the state, check your state's regulations and see.

If the pay is earned in a combat zone then its tax exempt, but if you're actually stationed overseas (Germany, Korea, Japan etc) then its taxable.

Answer 4

Pay while serving in a Combat Zone is exempt, but all other income is taxed.

Answer 5

If they are in a Combat zone for a certain length of time, they don't pay taxes................#######