What It Is

Your military service entitles you to several unique and powerful tax benefits that are not available to civilians. These are designed to reduce your tax burden and account for the unique circumstances of military life.

Why It Matters

These benefits can save you thousands of dollars each year. Non-taxable allowances like BAH and BAS make a large portion of your compensation tax-free, and special rules for combat zones can eliminate your tax liability entirely.

Who Qualifies & How It Works

• All active duty, Guard, and Reserve members. Specific benefits may depend on your location (e.g., combat zone) or family status.
• Non-Taxable Allowances: Your BAH, BAS, and other in-kind benefits (like on-base housing) are not considered taxable income by the IRS.
• Combat Zone Tax Exclusion (CZTE): If you serve in a designated combat zone for any part of a month, your entire enlisted pay for that month is tax-free. For officers, the exclusion is capped.
• State Tax Residency (MSRRA): The Military Spouses Residency Relief Act allows military spouses to maintain their home state's residency for tax purposes, even when moving to a new state on military orders.
• Moving Expense Deductions: You may be able to deduct some non-reimbursed moving expenses from a PCS.

Actionable Steps

What It Is

The DoD provides a robust network of programs to support military families, with a focus on affordable and high-quality childcare.

Why It Matters

Access to reliable and affordable childcare is critical for dual-income families and single-parent service members. DoD-sponsored programs are often significantly cheaper and higher quality than civilian alternatives.

Who Qualifies & How It Works

• Active-duty members and their dependents. Eligibility and priority can vary by location and program.
• Child Development Centers (CDC): On-base facilities offering full-day, part-day, and hourly care for children from 6 weeks to 5 years old. Fees are based on total family income.
• Family Child Care (FCC): DoD-certified providers who offer childcare in their on-base or government-leased homes. Offers a more flexible, smaller-group setting.
• Military Child Care in Your Neighborhood (MCCYN): For families in areas with a shortage of on-base care, this program provides fee assistance to help offset the cost of care from approved civilian providers in the local community.
• Respite Care: Programs like the Exceptional Family Member Program (EFMP) Respite Care offer temporary relief for families with special needs members.

Actionable Steps

What It Is

Military spouses and dependents are entitled to a range of benefits that support career development, education, and healthcare access.

Why It Matters

These programs acknowledge the sacrifices of military families and provide tangible support to help spouses maintain careers and ensure the entire family has access to healthcare and other essential services.

Who Qualifies & How It Works

• Legal spouses and dependent children of active duty, Guard/Reserve, and retired service members.
• DEERS Enrollment: The Defense Enrollment Eligibility Reporting System is the gateway to all benefits. Spouses and children must be enrolled in DEERS to receive a military ID card and access TRICARE, base facilities, etc.
• MyCAA Scholarship: The My Career Advancement Account provides up to $4,000 in tuition assistance for spouses of junior service members (E-1 to E-5, W-1 to W-2, O-1 to O-2) to pursue licenses, certifications, or associate degrees in high-demand fields.
• Spouse Preference for Federal Jobs: Spouses may be eligible for preference when applying for certain federal government jobs.
• GI Bill Transferability: Eligible long-serving members can transfer their Post-9/11 GI Bill benefits to a spouse or child.

Actionable Steps