35 Miss. Code. R. 3-07-04-104

Current through December 10, 2024

Section 35-3-07-04-104

Members of the United States Armed Forces generally include in income the same items as civilians. The following list of taxable and nontaxable items of income and deductible items of expense is intended to serve as a guide in answering questions frequently encountered by the taxpayer and is not to be considered as all inclusive.

1.Taxable Items:

Compensation for service in the Armed Forces:

a. Mileage allowance (less expenses for self)

b. Bonus paid for re-enlistment

c. Service pay

d. Voluntary allotments

e. Interest on G. I. life insurance dividends left on deposit with the Veterans Administration

f. Payments received from a former employer

g. Retirement pay

2.Not Taxable:

a. Benefit payments received under federal laws relating to veterans.

b. Benefit payments received under the G. I. Bill.

c. Cash received in lieu of subsistence and quarters.

d. Combat pay -- Enlisted members of the Armed Forces may exclude from gross income all pay received for any month during which they served in a combat zone, and officers may exclude up to $500 per month.

e. Commutation of quarters.

f. Compensation earned while a prisoner of war, missing in action or detained status.

g. Disability payDisability pay is excluded unless it is in effect early retirement caused by a disability and is based on the employee's age or length of service. This applies even if the employee's retirement is caused by an occupational injury or sickness.

h. Family allowances to spouses or dependents.

i. Reimbursement by the government for moving family and household effects on a change of official station for permanent duty.

j. Subsistence.

k. Allowances for uniforms.

l. Widows' pensions received from the Veterans Administration.

3.Deductible Items:

a. Cap and corp devices, campaign bars aiguilletes, epaulets and chin straps.

b. Local transportation expenses of reservists (limited) unreimbursed travel and transportation expenditures in the course of employment.

4.Not Deductible:

a. Damage to household furnishings in moving

b. Dues to officers' club

c. Expenses of visiting home

d. Living expenses of a naval officer stationed in one locality.

e. Lodging and meals on permanent overseas assignment or while permanently assigned to a ship.

f. Naval officers' subsistence expenses in excess of the allowance while on permanent duty afloat.

g. Uniform expenses where the uniform takes the place of ordinary clothing.

35 Miss. Code. R. 3-07-04-104