THREAD REVIVAL (closest post I could find to my question)
So, tax exempt leave. Didn't see the answer in 65-116 referenced above. I do see in DoD 7000.14-R, VOLUME 7A, CHAPTER 35 the details about selling leave back, but not using it as part of ordinary leave.
Q) Does the officer limitation to tax-exempt pay render tax exempt leave meaningless to anyone over the limit?
Say you earn 5 days of leave deployed in Jan & Feb to a CZTE area; those 5 days show up as "tax exempt leave." Now you take 5 days of leave in (say) July, and you don't otherwise have any CZTE that month. I gather from reading here & elsewhere that you would expect to have 5/30ths of your taxable pay be tax-free for that month (or perhaps it's 5/365ths of your annual pay?). Yes/no? In my situation (exceed the officer limit), that doesn't seem to be happening, which makes me speculate....
In other words, if you exceed the limit in January & February (when the leave was earned), has it already "used up" its tax free value when you take it, even in July (when the 5/30ths deduction would not exceed the limit)?