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Of course not. Why would it be?
I am like 99% sure that it wouldn't be.
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Differential pay is a courtesy from your employer which is 100% not legally required.
Don’t be greedy… it’s definitely not tax free.
Thank you for telling me what taxes are.
“Reservists called to active duty may receive military differential pay from their employer to represent the difference between their regular salary, prior to being called to active duty, and the amount being paid by the military. Military differential pay is voluntary by an employer and has special rules. For example, the pay is not considered wages and therefore is not subject to Social Security, Medicare, or income tax withholding. The income should be reported on Form 1099-MISC (Box 3) and on Form 1040 (Line 21) as "other income" when filing a tax return. Additionally, this pay will not qualify for the combat pay exclusion. Even though this income is not subject to any withholding, it is still considered taxable.”
https://www.military.com/money/personal-finance/tax-considerations-for-reservists.html/amp
“Differential wage payments made to an individual while on active duty
in the United States uniformed services for more than 30 days are subject to income tax withholding, but are not subject to FICA or FUTA taxes.”
https://www.irs.gov/pub/irs-drop/rr-09-11.pdf
Also: My own experience, as described above.
*Yes, I am right.
Pro
F. What zone though????
I did Afghanistan in 2013 as an 0311. Leatherneck was a freaking city 🤣 The FOB we operated out of was decent size, but I was still sharing a tent with 15 or so other dudes.
Funny, this time in Kosovo was working with Afghan refugees. The folks there were held up on security issues after the govt fell in Kabul in 2021. Some of these dudes had legitimately been Taliban commanders at one point... It was a weird experience.
OP, when you ll be filing your taxes there will be a question on the combat zone military service. I would imagine that it would get sorted right there automatically. Otherwise seek advice for an accountant. Since your body was physically on a deployment, then all combat zone entitlements should apply (my personal pov)
That's what I assume as well. I'm trying to get an estimate of what my return will be for the year to plan for that money.. obviously getting 6 months of federal tax back would be significant.. but you're right, plan as if I won't get it, and be happy if I do.
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