Tax Exemption for Deployed Military Compensation Outside the United States.
This bill exempts U.S. Armed Forces members from paying federal income tax on compensation received while deployed outside the United States. It replaces the current "combat zone" tax exclusion with a broader "deployment" definition. This change provides significant financial relief and increased take-home pay for military personnel serving actively abroad.
Key points
All compensation received by service members during deployment outside the U.S. becomes exempt from federal income tax.
The tax benefit is extended to a wider range of service members by replacing the restrictive "combat zone" definition with the broader term "deployment."
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