Combat Pay
What Is Combat Pay?
Combat pay is a tax-exempt month to month stipend paid to all active individuals from the U.S. armed services who are serving in designated hazardous zones. It is paid notwithstanding the person's base pay.
Understanding Combat Pay
Individuals from the armed services meet all requirements for combat pay assuming they are subject to — or injured by — hostile fire or unstable mines, or on duty on foreign soil and subject to the threat of physical mischief or impending risk due to civil distress, civil war, terrorism, or wartime conditions.
Combat pay is available to more than combat soldiers. Any person enrolled in a branch of the U.S. military who is assigned to a designated hazardous area is eligible to receive combat pay.
The concept of perceiving greater risk with extra pay originated during World War II. Initially called identification pay, advancing resolve among the infantry and increase retention was established.
Combat pay can be classified as hostile fire pay and fast approaching risk pay, and it is prorated for partial months. You can't receive hostile fire pay and inescapable peril pay simultaneously.
The amount Is Combat Pay in 2021?
Starting around 2021, combat pay is $225 per month, on top of a fundamental pay rate that changes widely. Essential pay is based on military rank and long periods of service.
Tax Benefits
Combat pay is generally not considered federal taxable income. Nonetheless, the beneficiary must in any case pay Social Security and Medicare taxes on the extra pay. States set their own rules for taxing combat pay. The U.S. Department of Defense can likewise assign certain combat zones as excluded from the tax break.
Combat pay is factored into applications for student aid made through the Free Application for Federal Student Aid (FAFSA) form, so students or parents of college students could be impacted.
Different Benefits
Military personnel with wards likewise receive a month to month Family Separation Allowance (FSA) whenever that they are away from their families for at least 30 days.
Likewise, personnel serving in combat zones can deposit up to $10,000 every year into a special savings account that pays a guaranteed 10% interest yearly. This program was laid out during the Vietnam War.
Rundown of Countries Where Combat Pay Applies
The United States isn't actively taken part in genuine combat in each of the countries on the combat zone list. The rundown additionally incorporates combat support areas and contingency operations areas.
Countries and areas designated as combat zones include:
- Afghanistan
- Jordan
- Kyrgyzstan
- Pakistan
- Tajikistan
- Uzbekistan
- Philippines
- Djibouti
- Yemen
- Somalia
- Syria
- Federal Republic of Yugoslavia
- Albania
- Kosovo
- Adriatic Sea
- Persian Gulf
- Red Sea
- The whole land area including Iraq, Kuwait, Saudi Arabia, Oman, Bahrain, Qatar, and the United Arab Emirates
Starting around 2021, the United States has four active combat zones approved for tax benefits by the Internal Revenue Service: the Sinai Peninsula, the Afghanistan area, the Kosovo area, and the Arabian Peninsula area.
Features
- The extra pay is generally not subject to federal income tax, albeit Social Security and Medicare taxes are deducted.
- Combat pay is a bonus paid to military service personnel who are serving in districts that are designated hazardous zones.
- Combat pay is factored into applications for student aid made through the Free Application for Federal Student Aid (FAFSA) form.
