Military and Ministry Flashcards
What are the Military Pay categories that can be excluded from GI? (7)
- Combat zone/Qualified Hazardous Duty pay
- Living Allowance
- Family Allowance
- Moving Allowance
- Travel Allowance
- In-Kind Allowance
- Death Allowance
Military Family Allowance items that are excluded from GI (4)
- certain education expenses for dependents
- emergencies
- evacuation to safety
- separation
Military In-Kind Allowance items that are excluded from GI (6)
- dependent care assistance program
- legal assistance
- medical and dental care
- commissary exchanges and discounts
- space available travel
- uniforms
Military Living Allowance items that are excluded from GI (3)
- BAH- Basic Housing Allowance
- BAS - Basic Subsistence Allowance
- OHA - Overseas Housing Allowance
Military Travel Allowance items that are excluded from GI (5)
- annual round trip dependent student
- leave between to consecutive overseas tours
- reassignment to a dependent restricted zone
- transportation for you/dependents during ship overhaul/inactivation
- per diem
How much of a minister’s housing allowance is excluded from GI?
Exclude the Lesser of:
- housing allowance
- amount used to rent/buy a home
- FMV of home provided + furnishing, utilities,etc.
** This amount is still subject to SE tax ***
Are offerings given directly to a minister included or excluded from GI?
include
What is the combat pay exclusion amount for enlisted members, warrant officers, and commissioned warrant officers?
- The entire months pay can be excluded if you spent at least one day of that month in a combat zone.
- exclude: military pay, awards, and enlistment bonuses
- exclude pay while hospitalized for injury/illness while serving in a combat zone
What is the amount of combat pay exclusion for commissioned officers and duty officers?
Amount is limited to:
Highest rate of enlisted pay
+ Imminent Danger/Hostile Fire Pay
** Must serve at least one day in the combat zone to exclude that months income
Is military severance pay included/excluded from GI?
Include - UNLESS the VA awards it as a disability severance then exclude
Is a disability payment made directly from the VA included/excluded from GI?
excluded
What should a taxpayer do if he received and reported pension income that the VA later declared to be disability pay?
File a 1040X for the affected years and exclude the income
How is the amount of combat pay for a tax year identified?
Combat pay will be listed on the W2 in box 1 and in box 12 code Q
What qualifies as service in a Combat Zone?
- Service in the combat zone for at least one day of a month
- absent from zone due to illness,wound or leave
- POW because of service in a combat zone
- service outside a combat zone that directly supports the operation in the combat zone
- service that qualifies for hostile fire/immanent danger pay
