Nontaxable income for Armed Forces members

Here's a list of the general types of income that aren't taxable to members of the military:
  • Combat pay
  • Basic Allowance for Housing (BAH)
  • Basic Allowance for Subsistence (BAS) living allowances
  • Housing and cost-of-living allowances while living abroad
  • Family allowances
  • Death allowances
  • Dislocation allowances
  • Temporary housing allowances
  • Travel allowances
  • Moving allowances
  • Uniform allowances
  • Education allowances
Details regarding the exceptions and specific rules of nontaxable income can be found through the Armed Forces' Tax Guide .

The wages shown in Box 1 of your Form W-2 from the military shouldn't include any military pay that is excludable from income. If nontaxable income has been included in Box 1 of your Form W-2, you need to ask the payroll office for a corrected Form W-2.

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