Some combat pay may be excluded from taxable income. The month for which you receive the pay must be a month in which you either served in a combat zone or were hospitalized as a result of wounds, disease, or injury incurred while serving in the combat zone.
Those in the Reserves may be able to take deductions for certain travel expenses, if their reserve duties take them more than 100 miles away from home. These expenses would be claimed on Form 2106.
Costs incurred for uniforms (purchase and care) may be deducted. You generally can’t deduct the cost of your uniforms if you are on full-time active duty in the armed forces. However, if you are an armed forces reservist, you can deduct the unreimbursed cost of your uniform if military regulations restrict you from wearing it except while on duty as a reservist. In figuring the deduction, you must reduce the cost by any nontaxable allowance you receive for these expenses.
Following are additional resources:
- Tax Information for Members of the Military
- Tax information for Active Duty Military and Reserve Personnel
- IRS Publication 3 – Armed Forces Tax Guide
- Q&As on Combat Pay Tax Provisions
- Military Tax Tips YouTube video published by the IRS
Ohio also offers tax provisions for the current and retired military.
Law Change for Taxable Years 2008 and Forward: Effective for taxable years beginning after Dec. 31, 2007, military retirement pay of taxpayers who retired from the active or reserve components of the U.S. Army, Navy, Air Force, Marine Corps, Coast Guard, or from the National Guard, and Survivor Benefit Plan (SBP) benefit recipients, are exempt from Ohio income tax and from Ohio school district income tax. Eligible taxpayers can use Ohio Schedule A, line 26, to deduct such retirement pay included in federal adjusted gross income on the current Ohio income tax form IT 1040. This deduction also applies to such amounts received by the surviving spouse or the former spouse of each military retiree who is receiving payments under the Survivor Benefit Plan.
If you need additional help, you can reach Ohio Department of Taxation by e-mail at Military-Info@tax.state.oh.us.