Military Pay That Is Excluded From Gross Income

0:00Types of military pay that can be excluded from gross income. This is a money minute from InCharge Education Foundation and militarymoney.com. When you're doing your taxes this year, make sure you pay attention to these types of military pay and allowances that can be excluded from your gross income. Combat zone. If you are a member of the Armed Forces serving in a designated combat zone, then you can exclude certain types of pay from your income. You need only serve for one or more days in a month to qualify for exclusion for the entire month. Retirement contributions. Generally, you can deduct some portion of the contributions you make to your traditional IRA for the year. However, if your ear spouse were covered by an employer-maintain plan at any time during the year, then not all of these deductions may be eligible. Sale of a home. You may not have to pay tax on the profit realized from the sale of your main home. A deduction of up to $250,000 of gain, or $500,000 if married filing jointly, is generally available upon the sale of a main home. This money minute is made possible by InCharge debt solutions. Visit us online at www.incharge.org