Combat Pay
Combat pay is extra income which is given to active military members when they are in an active combat zone.
Updated: November 21, 2023
Combat pay is extra income which is given to active military members when they are in an active combat zone. Every member receives this in addition to the base pay and is paid out monthly as a stipend. Although it can be taxable or nontaxable, this pay is nontaxable for many members.
Compensation management software is used by military branches to provide active military personnel their combat pay, in addition to other types of compensation packages.
Every member of the military is not eligible to receive combat pay. Combat pay is only for military personnel who are working in active or otherwise hazardous combat and war zones. These war zones are generally classified through Executive Order or certified by the Department of Defense.
Compensation management software, Payroll software and Personal tracking are often use to keep track of combat pay and how much has accumulated.
The tax rate for combat pay is set by each state in the United States just like any other tax like income or sales. Reported combat pay may affect Free Application for Federal Student Aid (FAFSA) eligibility if a veteran or active military member decides to return to school. Combat pay should not be included in overall reported income and is also true for military parents filling out FAFSA for children. An active service member automatically receive a two-month extension to file if they overseas during the official Tax Day. Any additional benefits to the family is not included if death in the line of duty occurs.
Ways to keep track of combat pay
- Military Pay Statements: Regularly review military pay statements to ensure combat pay is accurately reflected.
- Leave and Earnings Statements (LES): Monitor LES for any adjustments or changes related to combat pay.
- Communication with Finance Office: Stay in regular communication with the military finance office to address any concerns or discrepancies.
- Online Military Portals: Access online military portals to check and verify combat pay details.
- Keep Records: Maintain personal records of deployments, hazardous duty assignments, and related documents to cross-reference with pay statements.
- Direct Deposit Statements: Check direct deposit statements for any additional combat pay deposits.
- Combat Zone Tax Exclusion: Understand the tax exclusion policies for combat zones and ensure proper implementation.
- Consult with Superiors: Seek guidance from superiors or unit finance officers to clarify any doubts regarding combat pay.
- Utilize Military Apps: Some military apps provide real-time access to pay information, including combat pay details.
- Regular Audits: Conduct regular audits of pay statements to identify and rectify any inaccuracies promptly.
