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Full Income Tax Exemption for Active and Reserve Military Service Members.

This law provides a major financial benefit to individuals serving in the active or reserve military by exempting their service compensation from federal income tax. This change means service members will receive higher net pay, directly improving their financial stability. However, military pensions and retirement pay remain taxable.
Key points
Compensation received for active or reserve service in the U.S. Uniformed Services will be excluded from gross income for tax purposes.
Service members will see an increase in their take-home pay due to the elimination of federal income tax on their wages.
Military retirement pay and pensions are specifically excluded from this tax exemption and remain subject to taxation.
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Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_6189
Sponsor: Rep. Hamadeh, Abraham J. [R-AZ-8]