Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Military Income Workout

Skills Workout

Certification Warm Up: Drill & Practice

  1. Beginning in March of the tax year, Fran, an enlisted member of the Armed Forces, served seven months just outside the qualified hazardous area of the former Yugoslavia in direct support of those military operations. In September, Fran received orders to return home. Is Fran's qualified military pay excluded from her gross income?
  2. Leah was hospitalized for a specific disease 6 weeks after she left the combat zone. The incubation period of the disease is from 1 to 2 weeks. Was the pay she earned while hospitalized for the disease taxable?
  3. Do Armed Forces members deployed overseas outside a qualified hazardous duty area qualify for the combat zone income tax exclusion, even if they support operations taking place in a qualified hazardous duty area?