tax free question for Reservists

[bmxandjets]

Guard/Reserve dudes,

If you are in a tax free zone, that month's pay is tax free... But, if you come home during that month and do UTA's/AFTP's, are they tax free also?

Thanks-

 

[airgator]

UTA's and TP's are not tax free.

 

[bmxandjets]

that's what i have heard...and what i've been told. but, have never seen that written anywhere.. i've been in and out of combat zones the last year, doing UTA's in between...seems like i'm getting back more taxes than just my orders.. just can't find anything other than word of mouth on the issue.

thanks-

 

[germb747]

I thought all military pay was tax free for that month, but I could be wrong.

 

[bmxandjets]

that's what i thought as well.. i know "technician pay" isn't tax exempt.. but, i thought military pay was..

 

[CFIIer]

UTAs and TPs aren't supposed to be tax free. Although, I've heard that if you hold out and submit your Hostile Fire form around the same time that you submit your UTA and TPs pay sheets, you can squeeze some extra tax free money out of it.
There is also a rumor that has been flying around for awhile now that they are going to only give you tax free for the specific days you were downrange...

 

[airgator]

In a bill signed last year, tax free is supposed to start being prorated only for days you were down range, as well as if you are down for only 2 days, you will only get 2/30 of hostile fire pay, etc. They haven't started prorating hostile fire yet, and from talking to finance guys about the tax free issue, even though it is supposed to happen, it is almost impossible for them to implement prorating tax free for only certain days. Everyone I've talked to at mil pay doesn't think we will see tax free getting prorated any time soon, they'd pretty much have to revamp the whole mil pay system.

 

[sjflyer]

I am a former disbursing officer and I gotten my drill weekend pay tax free for drills that I did in the same months that I served in a combat zone (CZET). I had to fight the system (2 months) and I had to threaten to write a congressional letter but I eventually go it done. Good luck!

(FMR) Volume 7A, Chapter 44, Paragraph 440102 sub paragraph 2

2. Effective March 21, 1996. All of the compensation of an enlisted member or warrant officer for any month during any part of which such members perform active duty in a combat zone or qualified hazardous duty area (QHDA) (defined in subparagraph 440103.B), qualify them for combat zone tax exclusion (CZTE) under subparagraph 440103.C. For commissioned officers, no more than an amount equal to the maximum CZTE in effect for any month during any part of which such officers perform active duty in a Combat Zone or QHDA, qualify them for combat zone or qualified hazardous duty area tax exclusion under subparagraph 440103.C.


Key word is all compensation.

Maximum CZTE. The amount of the maximum CZTE in effect for a qualifying month equals the sum of the highest rate of enlisted basic pay payable under [FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]Table 1-10[/FONT][/FONT], Note 2 and the amount of hostile fire/imminent danger pay actually payable to the officer for the qualifying month. Also see Column B of rules 1 through 4 under Table 44-1 and

 

[SIG600]

In a bill signed last year, tax free is supposed to start being prorated only for days you were down range, as well as if you are down for only 2 days, you will only get 2/30 of hostile fire pay, etc. They haven't started prorating hostile fire yet, and from talking to finance guys about the tax free issue, even though it is supposed to happen, it is almost impossible for them to implement prorating tax free for only certain days. Everyone I've talked to at mil pay doesn't think we will see tax free getting prorated any time soon, they'd pretty much have to revamp the whole mil pay system.

Heard that was coming down the pipe. No more "touch the line, get the month" programs. Was fun while it lasted.

BMX you trying to afford that avatar?