What qualifies as combat zone?

What qualifies as combat zone?

The term “combat zone(s)” is a general term used on IRS.gov and includes all of the following hostile areas where military may serve: actual combat areas, direct combat support areas, and qualified hazardous duty areas.

Is combat pay earned in a combat zone taxable?

Any form of pay earned while on deployment in a combat zone is excluded from federal income tax. This translates to a significant tax savings for the active service member in combat and his family back home.

Do combat vets get free healthcare?

You can receive cost-free medical care for any condition related to your service in theater and access to VA’s full Medical Benefits Package. The 5-year eligibility period begins on your discharge or separation date from active duty military service, or in the case of multiple call-ups, the most recent discharge date.

A combat zone is any area the President designates by Executive Order as an area in which the U.S. Armed Forces are engaging or have engaged in combat. An area usually becomes a combat zone and ceases to be a combat zone on the dates the President designates by Executive Order.

What is considered combat pay?

Combat pay includes all military pay—including wages earned as well as any reenlistment or other bonuses, etc. — received during a month in which a service member was stationed in a combat zone for at least one day.

Who is eligible for combat pay?

Combat pay is a tax-exempt monthly stipend paid to all active members of the U.S. armed services who are serving in designated hazardous zones. It is paid in addition to the person’s base pay. Combat pay is a bonus paid to military service personnel who are serving in regions that are designated hazard zones.

How much does a combat soldier make?

Army Soldier Salary

	Annual Salary	Hourly Wage
Top Earners	$50,000	$24
75th Percentile	$35,500	$17
Average	$30,572	$15
25th Percentile	$25,000	$12

Can a military contractor pay taxes in a combat zone?

As such, military contractors are not eligible to exclude income earned in a combat zone from their US expat taxes. But, they can use the FEIE if they qualify via the bona fide or physical presence tests, just like non-military expats. The IRS lists designated combat zones on their website, for your reference.

Do you qualify for the combat zone extension?

However, you may qualify for the “ combat zone extension ”. When you are a military contractor working overseas, you may also continue to be considered a resident of the state you resided prior to starting work overseas (even though you are living and working overseas).

Who is eligible for DBA protection as a military contractor?

Private military contractors, whether citizens or noncitizens, who work for the DoD or any other government arm and are injured in a foreign war zone, either as the result of an accident or by enemy activity, are eligible for DBA protection.

Can a military contractor file taxes as an US citizen?

Combat/War Zone Exclusion. The IRS has regulations in place that allow enlisted military personnel to exclude income earned in a “combat zone” from US expat taxation. As mentioned above, military personnel differ from military contractors.