Why are you "excluding" your withholding amount? What's excluded is your income (up to the ~$7,400 limit). Remember, your monthly withholding is not the tax you're paying, it's an estimated installment on your overall tax liability for the year.
No, because you're ignoring your base + fly + hfp = taxable income that is already subject to the exclusion. Depends on your rank & years for flight pay purposes, but if your normal total taxable income for the month is over the limit, receiving the bonus in the CZTE makes no difference for your tax exclusion; if your normal taxable income is below the limit, the first $X of the bonus to bring it up to the limit is an additional tax exempt amount.
A better way to look at this is what tax bracket you're in. If you're going to be in the desert a lot, you'll probably drop down the 15% (or lower?)--multiple CZTE months make this a bit tough to estimate. Anyway, go w/ 15% for argument. Figure out what "X" is (how much your normal total taxable income is below the limit), multiply that by 15% (the tax you "would have" paid on X if not in CZTE), that's your tax advantage. Bottom line, not going to be a large amount, certainly not $2K.j
PS: Sputnik pretty much answered this earlier in the thread: https://www.flyingsquadron.com/forums/index...st&p=162499