What Is a Combat Zone?
A struggle zone is an area designated as a fight zone all over a specified time frame for the wishes of reporting to the Internal Income Supplier (IRS) by way of military team of workers. While working in a struggle zone, members of the military download numerous tax benefits.
Key Takeaways
- A struggle zone is an area designated as a fight zone all over a specified time frame for the wishes of reporting to the Internal Income Supplier (IRS) by way of military team of workers.
- While working in a struggle zone, members of the military download numerous tax benefits.
- Military members are allowed to exclude from gross income reported to the IRS military compensation earned for military supplier in a struggle zone.
- As of 2022, the U.S. has 4 designated struggle zones: Sinai Peninsula, Afghanistan area, Kosovo area, and the Arabian Peninsula area.
Working out a Combat Zone
The IRS formally defines a struggle zone as “any area the President of the us designates by way of Executive order as an area during which the U.S. Armed Forces are attractive or have engaged in struggle. An area generally turns right into a struggle zone and ceases to be a struggle zone on the dates the President designates by way of Executive order.”
Military members are allowed to exclude from gross income reported to the IRS military compensation earned for military supplier in a struggle zone. Moreover they could exclude reenlistment bonuses, pay for accumulated go away, and miscellaneous items (e.g., awards) won all over classes in a struggle zone. Then again, the amount of exclusion is restricted to the most productive imaginable price of enlisted pay plus “coming close to close to chance/opposed fireplace” pay for each month all over any part of which a military team of workers served in a struggle zone, or was once as soon as hospitalized on account of supplier in a struggle zone.
Explicit Problems
Provide Known U.S. Combat Zones
The U.S. is not actively engaged in exact struggle in all the global places on the struggle zone tick list. The tick list moreover accommodates struggle fortify areas and contingency operations areas. As of 2020, the U.S. has 4 lively struggle zones: Sinai Peninsula, Afghanistan area, Kosovo area, and the Arabian Peninsula area.
Underneath the 2017 Tax Decrease and Jobs Act, the Sinai Peninsula was once as soon as built-in inside the tick list of recognized struggle zones. Members of the U.S. Army, U.S. Military, U.S. Marines, U.S. Air Power, and U.S. Coast Guard who performed services and products inside the Sinai Peninsula can now claim struggle zone tax benefits.
The Afghanistan area encompasses Jordan, Kyrgyzstan, Pakistan, Tajikistan, and Uzbekistan, Philippines, Djibouti, Yemen, Somalia, and Syria. This area was once as soon as designated beginning in 2001. After Afghanistan, other geographic areas had been certified by way of the Department of Coverage for struggle zone benefits because of their direct fortify of military operations in Afghanistan.
The Kosovo area was once as soon as designated as a struggle zone beginning in 1999. This area accommodates the Federal Republic of Yugoslavia (Serbia/Montenegro), Albania, Kosovo, the Adriatic Sea, and the Ionian Sea (north of the thirty 9th parallel).
Finally, the Arabian Peninsula area was once as soon as ordered as a struggle zone beginning in 1991. This area accommodates the Persian Gulf, the Red Sea, the Gulf of Oman, the part of the Arabian Sea that is north of 10 ranges north latitude and west of 68 ranges east longitude, the Gulf of Aden, the whole land areas of Iraq, Kuwait, Saudi Arabia, Oman Bahrain, Qatar, the United Arab Emirates, Jordan, and Lebanon.
