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Military Course > Military Income

Military Income

This lesson is designed to help you determine which income received by current and former members of the U.S. Armed Forces is reportable on the return, and the status of any medical separation pay or pay related to service in a combat zone.

Click the Skills Workout button to learn more about reporting military income.

Skill Check

Check your understanding of military income. Indicate whether each of the statements below is true or false by clicking on the correct answer. To check your answers, click the Check My Answers button at the bottom of the page.

  1. True or False? Volunteers need to account for enlistment and reenlistment bonuses separately when preparing an Armed Forces member's tax return because the tax withholding information is not shown on the Form W-2.
  • A.
  • B.
  1. For members of the Armed Forces, basic allowances for housing and subsistance (BAH and BAS) are excludable from income.
  • A.
  • B.
  1. When applying community property laws, where the Armed Forces service member lives and marital status are used to distinguish military pay from community income.
  • A.
  • B.