Deployed Pay / Combat Zone Tax Exclusion

[JBueno]

When deployed to a combat zone, does anyone simply . . . not have taxes taken out on your LES?

I'm a traditional guard bubba deployed for the Nth time. Taxes are always taken out on our LES. They are repaid in the next month's LES. However, that next month's LES has taxes taken out, then reimbursed on the third month's, and so on. I don't know if that's how the system is designed to work, or that's how Guard finance works. Makes it a PITA to double check amounts are correct come W-2 time. May also be a case where every guard franchise unit does it differently. 

[Scooter14]

When I was active duty, I’d get a refund for the first month and then they would not take the taxes out after that.

 

My understanding with the Guard is that they will always take it out and then refund it on the first of the next month (or the month after that if you got there after the 24th ish.)

 

You’d think after 17 years of war and constant deployments the Guard would figure out how to fix stuff like this.

 

[JBueno]

Thanks Scooter.

Here's a follow-up on guard/reserve deployment pay: if a member is serving in the combat zone, shouldn't ALL pay received that month be tax free up to the highest enlisted pay plus hostile fire?

For example, if I do 6 AFTPs and a few AT days in early October, then get to the Deid on October 25th, shouldn't the income taxes on those AFTPs and AT days be refunded?

Trying to find a reference, but all I can find is this from IRS Publication 3 - The Armed Forces Tax Guide.

Partial month service is treated as full month of service.

 If you serve in a combat zone for any part of one or more days during a particular month, you are entitled to a combat pay exclusion for that entire month.

 

Strat airlift guys, I'm looking in your direction.

Edited October 22, 2018 by JBueno

[Scooter14]

Thanks Scooter.
Here's a follow-up on guard/reserve deployment pay: if a member is serving in the combat zone, shouldn't ALL pay received that month be tax free up to the highest enlisted pay plus hostile fire?
For example, if I do 6 AFTPs and a few AT days in early October, then get to the Deid on October 25th, shouldn't the income taxes on those AFTPs and AT days be refunded?

AT - yes

AFTPs - no

It’s for active duty pay only.