Originally Posted by
MoosePileit
All,
Being assigned to or working in a combat zone triggers another tax advantage. Earnings received while in the combat zone are excluded from taxable income. This exclusion is unlimited for enlisted members and warrant officers and is limited to $6867.60 per month in 2007, for officers. If you spend a single qualifying day in the combat zone, your pay for the entire month is excluded from taxable income.
This doesn't mean an exclusion of up to $6867.60 of taxes. It means that only the first $6867.60 of taxable income will be excluded. So your cha ching won't be that much more than normal.